How depreciation is estimated here
Each line uses straight-line depreciation: age divided by expected life, up to the cap you choose. With Depreciate materials only checked, the labor share you enter is left undepreciated. Uncheck it to see what the first check would look like if the whole line were depreciated.
Why the labor column is there
Arkansas courts have addressed whether labor can be depreciated when calculating actual cash value, in decisions including Adams v. Cameron Mutual (2013) and Shelter Mutual v. Goodner (2015). The law can change, so treat the comparison as illustrative and talk to an Arkansas attorney if the question matters to your claim. Our guide on labor depreciation in Arkansas explains more.
First check and holdback
The first check is ACV minus the deductible. The holdback is recoverable depreciation, paid after repairs are completed within the policy’s time limit. ACV-only policies don’t pay the holdback.
Questions about this tool
What expected life should I use?
Common figures are 25–30 years for laminated shingles, 10 years for interior paint and 15–25 years for many floor coverings. Your carrier’s estimate may list its own.
Why is there a depreciation cap?
Many estimates cap depreciation so an item never drops to zero value. Check what your estimate used.
Is this how my carrier calculated it?
Not necessarily. Carriers use their own methods and condition adjustments. Use this to ask informed questions.
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