In Mobile Claims®/Claims Connect™, there are four options for calculating depreciation: Percentage, flat amount, alternate depreciation (client specific and client defined) , or the Age/Useful life of the item.
When Age/Useful Life is used, the age of the item or material is entered in years in the age field by the user. The age entered is then applied against the useful life value provided in the CoreLogic ® database. With this information, a default or suggested depreciation value is automatically calculated. For example, an item that is 5 years old, with a useful life (average life expectancy) of 10 years, would calculate a suggested default depreciation of 50% (5 / 10 * 100 = 50%).
This is further customizable by client specification to apply depreciation to only individual components of the item (materials, labor, equipment, market conditions, overhead and profit, and/or taxes).
Each user must take care to determine the appropriateness of depreciation as CoreLogic does not determine depreciation or Actual Cash Value (ACV).
To comply with California specific DOI requirements, all database regions in the state of California have estimate line-item categories that have been locked/excluded for the application of depreciation. The categories that are locked/excluded are listed in the table below. Because these categories are locked, depreciation values for items within these categories cannot be overridden.
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