Troubleshooting depreciation
One of the most common questions we get asked is "Why isn't depreciation calculating right on my line items?" Unfortunately, there is no easy answer because there are so many possibilities. Here are a few things to check before you get too frustrated.
The depreciation may be reporting based on factors other than those you expect.
To check how the depreciation is reporting, click the depreciation in the selected line item.
The line item option settings may be removing depreciation.
Your item has to have a category and selector chosen to property calculate depreciation.
Next, make sure the condition (use) isn’t set to New. Finally, make sure the insured replaced option is set correctly. If you’ve selected the Repl check box, any depreciation will be removed. This is because the Repl check box indicates the item will be replaced directly by the insured.
The policy type may have depreciation restrictions.
Check the policy type on the Claim Info tab under Coverage/Loss. Different policy types have different depreciation requirements. For example, an ACV policy will usually have the depreciation set to “Non-recoverable.”
The claim parameters may need to be changed.
Go to the Claim Info tab and select Parameters. In the Depreciation Options section, make sure the max depreciation is higher than 0% and that the other options have the correct selections for the claim. If none of the “Depreciate” check boxes are selected, no depreciation will be applied.
