depreciation
Depreciation is the decrease in the value of property over a period of time, usually as result of age, wear and tear from use, or economic obsolescence.
depreciation
Depreciation is the decrease in the value of property over a period of time, usually as result of age, wear and tear from use, or economic obsolescence.
Additional Information
Actual physical depreciation (wear and tear from use) is subtracted from the replacement cost of insured property in determining its actual cash value (ACV); courts in some jurisdictions have allowed insurers to deduct depreciation due to economic obsolescence as well.
