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RROBBY
USA
7 Posts |
 Posted - 09/09/2002 : 10:23:55
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| BEEN ADJUSTING 20+ YRS. COMPANY TOLD ME TO DEPRECIATE DECKING. COMP ROOF OVER WOOD ON SLATES. HAVE NEVER HEARD OF DEPRECIATING DECKING. THIS IS A TEXAS HO-B. WHAT IS BASIS FOR THIS? ANY IDEAS? ROBBY IN ODESSA, TX. |
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Cecil
USA
35 Posts |
Posted - 09/10/2002 : 08:48:43
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Most of these policies have some language to the effect that until repairs are actually made, the ACV is payable initially. In the case of replacing decking which is not actually there, I would think they are on shifting sand.
But,it is open to debate that if there is no real damage to the roof underlaying the shingles why would you owe anything on it.
If it was me, I would want the supervisor for the company to sign off on the activity log that he/she was directing me to depreciate the decking and then do so. |
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Todd_Summers
USA
69 Posts |
Posted - 09/10/2002 : 11:01:43
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| Good advice Cecil. |
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Lon Sterling
68 Posts |
Posted - 09/10/2002 : 11:57:14
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| I've seen companies TRY to do it but if there was a protest to the Texas Department of Insurance, there would be no chance to prevail since TDI has a nailable surface bulletin. The companies I've seen try this are usually the small ones like Beacon, Texas Specialty or other high risk insurers. Seldom do the major carriers try anything like that. It probably stems from the OLD bulletin from 1992 that required decking on every cedar shingle over spaced sheathing. Since they treated a whole class of policyholders to that decking then, there might be cause for a class-action for treating policyholders with the same problem differently now. Hence the small company willingness to take the chance and the larger ones not. |
Lon |
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ChuckDeaton
USA
373 Posts |
Posted - 09/11/2002 : 00:31:56
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Gerally speaking policies that provide Replacement Cost require replacement. Generally depreciation is shown to establish Actual Cash Value and Actual Cash Value less the deductible is due and payable. Estimated replacement cost using Xactimate, DDS, Simsol or PowerClaim is the norm. Once Replacement is complete actual Replacement Cost is established and can be paid. Determining Actual Cash value is a thorny problem, a deep dark dangerous problem, one I am wrestling with at the moment, and one that is being dicussed in another forum.
Another point is that most companies have a threshold, something around $2500, on HO policies and Replacement cost less the deductible is always paid below the threshold amount. I think that Texas has a law that says something to the effect that $1500 of any loss is Replacement Cost. |
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depreciation of decking
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