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Gale Hawkins (Gale)
Posted on Tuesday, May 15, 2001 - 11:35 pm:   

Scott along those lines I was told last week that NFIP does not permit depreciation on labor period and that State Farm has lost a case involving the depreciation of labor.

Can someone help me understand the train of thought here? If a 20-year roof is replaced after 10 years due to hail I can see for example a 50% depreciation of the materials but 50% of the labor is gone as well as I see it. As a homeowner with a claim I would like the sound of no depreciation on labor. If they did this on autos even a totaled car would still be worth the labor it took to build it, would it not?
Scott Wiens (Digitalsaw)
Posted on Tuesday, May 15, 2001 - 2:42 pm:   

Thanks for the responses to my query. My question stemmed from a conversation I had with an adjuster who said NFIP was cracking down on estimates where depreciation was added by trade without adequate concern given to the individual line items. I am aware it has been a common practice, I was just curious as to if they have been this strict before. Thanks again for the responses. I think you answered my question.
John A. Postava (Johnp)
Posted on Wednesday, May 09, 2001 - 8:27 am:   

I believe they are having the last official flood certification at the NFIP WYO conference in Minneapolis, MN as the end of this month. You can contact NFIP at 1-800-H2O-NFIP for more information. Also, Sweet Claims Service out of Talaha, OK usually has a full training class in Dallas in June or July. SCS usually has Florida Wind, Tower Hill and NFIP representatives at their 3 day session. SCS can be reached at 800-833-0258.
Gary Young
Posted on Tuesday, May 08, 2001 - 3:24 pm:   

Are there any more flood certifications this year coming up anywhere
Darryl Martin (Darrylm)
Posted on Tuesday, May 08, 2001 - 9:44 am:   

I agree with John. NFIP has always required that each item be addressed individually. The correct method is not just to have a line by line depreciation, but to depreciate each item based upon its own merits.

Darryl Martin
Jeff Goodman
Posted on Monday, May 07, 2001 - 4:53 pm:   

The deprecitation just needs to be displayed on the line. The estimating system I wrote accepts the depreciation percentage for the trade, and distributes it to the line. The printout shows this depreciation by line.
John A. Postava (Johnp)
Posted on Monday, May 07, 2001 - 5:03 pm:   

NFIP has always required "line by line" depreciation. Adjuster may still set general depreciation for an estimate by using trade tables but NFIP requires them to take each repair item into account separately and change individual items whose depreciation may be over or under the trade table setting. For example, a five year old bedroom carpet in a house where all other room's carpets are 1 year old. An adjuster can set the "carpet" depreciation at the 1 year rate but override the bedroom carpet to reflect the older material.

Maybe I am missing the point here but in the 20 or so years I've been flood adjusting, depreciation has always been handled this way.
Posted on Wednesday, May 02, 2001 - 6:23 pm:   


It has been proper practice with Flood claims
for years that everything being replaced is depreciated and that each line item of the estimate is depreciated showing the RCV - Depr. - ACV. The other thing that you must
remember to do is take out any items that no
O & P is allowed on ie. cleanup, carpet, appliances. before reaching your total and add
then add those items back in AFTER you have figured the O & P
Scott Wiens (Digitalsaw)
Posted on Wednesday, May 02, 2001 - 5:54 pm:   

I spoke with an adjuster who had recently gone through the flood re-certification class. He informed me that NFIP is requiring all adjusters to depreciate by individual line item inside an estimate instead of setting a common depreciation perentage by trade and applying it to the estimate. Basically, it sounds as if they are requiring adjusters to depreciate as they would a normal homeowners claim. He also told me NFIP said they were going to be pretty strict on this one. Anybody heard anything similar to this and if so, do you agree with it?

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