Check Your State Law Before Depreciating Labor

The Tennessee Supreme Court became the latest state court to rule on whether or not the labor component of the actual cash value (ACV) amount of property damage can be depreciated. According to the Court, the term “depreciation” is ambiguous and the policy language holds that labor cannot be depreciated. Tennessee joins Kentucky in not allowing labor to be depreciated. Other states such as Nebraska and Kansas have ruled labor can be depreciated. Find out how these differences can affect national claims adjusters and property adjusters.