In Estimate®/Claims Workspace™, 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 Cotality® 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), on a state by state basis.
Each user must take care to determine the appropriateness of depreciation as Cotality® does not determine depreciation or Actual Cash Value (ACV).
To comply with California specific regulatory 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 application for items within these categories cannot be applied or overridden.
Categories Locked for Depreciation in California | ||||
| ACT – Labor, Minimum Charge & Bid Items | CLN – Trims & Moldings | FRM – Lumber | ||
| AWN – Labor, Minimum Charge & Bid Items | CLN – Windows | FRM – Other | ||
| CAB – Countertops | CNC – Asphalt | FRM – Posts & Beams | ||
| CAB – Labor, Minimum Charge & Bid Items | CNC – Drilling & Sawing | FRM – Rafters | ||
| CAP – Contents - Clean Appliances | CNC – Footings & Foundations | FRM – Rafter Systems | ||
| CDC – Contents - Clean Textiles | CNC – Labor, Minimum Charge & Bid Items | FRM – Sheathing | ||
| CDC – Accessories | CNC – Other | FRM - Trusses | ||
| CDC – Dress Clothes | CNC – Piers | FRM - Underlayments | ||
| CDC – Dress Clothes / Junior | CNC - Rebars | FRM – Wall Framing | ||
| CDC – Faux Fur | CNC - Sidewalks | HVC – Chimney | ||
| CDC – Fur | CNC – Slabs | HVC – Ductwork | ||
| CDC – Hats | CPS – Contents – Packing, Handling & Storage | HVC – Labor, Minimum Charge & Bid Items | ||
| CDC – Household | CUP – Chairs | INS – Batt | ||
| CDC – Leather / Suede | CUP – Ottomans | INS – Blown | ||
| CDC – Miscellaneous | CUP – Sofas & Love Seats | INS – Labor, Minimum Charge & Bid Items | ||
| CDC – Other | DMO – General Demolition | INS – Other | ||
| CDC – Outerwear | DOR –Bi-Fold Doors | INS – Rigid | ||
| CDC – Rugs | DOR – Bypassing Doors | LAB – Labor Only | ||
| CDC – Shoes / Purse / Belt | DOR – Entry Doors | MAS – Brick & Block Walls | ||
| CDC – Sleepwear | DOR – Flush Doors | MAS – Coping | ||
| CDC – Uniform / Workclothes | DOR – Garage | MAS – Doors & Windows | ||
| CDC – Wedding | DOR – Hardware | MAS – Labor, Minimum Charge & Bid Items | ||
| CDC – Window Treatments | DOR – Labor, Minimum Charge & Bid Items | MAS – Other | ||
| CEL – Contents – Clean Electric Items | DOR – Other | MAS – Stone Walls | ||
| CGN – Contents – Clean General Items | DOR – Panel Doors | MAS – Veneer Walls | ||
| CHF – Beds & Dressers | DOR – Patio Doors | MISC - Miscellaneous | ||
| CHF – Cabinets | DOR – Pocket Doors | MIT – Biohazard/Trauma | ||
| CHF – Other | DOR – Shower Doors | MIT – Equipment & Accessories | ||
| CHF – Shelving | DOR – Storm & Screen Doors | MIT – Labor, Minimum Charge & Bid Items | ||
| CHF – Tables & Chairs | DRY – Ceilings & Walls | MIT – Mold Remediation | ||
| CLM – Contents – Clean Lamps & Vases | DRY – Labor, Minimum Charge & Bid Items | MIT – Other | ||
| CLN – Bathroom & Kitchen | ELE – Labor, Minimum Charge & Bid Items | MIT – Water Mitigation | ||
| CLN – Cabinets & Countertops | ELE – Rough Electrical | PLA – Labor, Minimum Charge & Bid Items | ||
| CLN – Ceilings, Floors & Walls | EQP – Equipment Rentals | PLA – Stucco & EIFS | ||
| CLN – Doors | FCO – Ceramic Tile | PLA – Walls & Ceilings | ||
| CLN – Electrical | FCO – Labor, Minimum Charge & Bid Items | PLM – Labor, Minimum Charge & Bid Items | ||
| CLN – Equipment | FCO – Stone | PNT – Labor, Minimum Charge & Bid Items | ||
| CLN – Exterior | FEE – Permits & Fees | PNT – Mask & Protection | ||
| CLN – Fireplace | FEN – Labor, Minimum Charge & Bid Items | PNT – Structure* | ||
| CLN – HVAC | FNC – Labor, Minimum Charge & Bid Items | RFG – Labor, Minimum Charge & Bid Items | ||
| CLN – Labor, Minimum Charge & Bid Items | FNC – Trims & Moldings | SDG – Labor, Minimum Charge & Bid Items | ||
| CLN – Light Fixtures | FPL – Fireplace | SFG – Labor, Minimum Charge & Bid Items | ||
| CLN – Other | FRM – Decking | STR – Steps* | ||
| CLN – Pools & Hot Tubs | FRM – Furring Strips | STR – Railings* | ||
| CLN – Stairs & Railings | FRM – Joists | TIL - Tile | ||
| CLN – Structure | FRM – Labor, Minimum Charge & Bid Items | WDW – Labor, Minimum Charge & Bid Items | ||
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article