DepreciationMay 8, 20265 min read
Contents Depreciation Is Not One-Size-Fits-All
Depreciation schedules help convert replacement cost into actual cash value, but the right schedule can depend on the policy, carrier, public adjuster, item type, age, and documentation behind the claim.
In the contents part of a claim, depreciation is the amount of value an item loses due to age, wear, and tear. ACV (actual cash value) is roughly RCV (replacement cost value) - depreciation. A newer item usually receives less depreciation than an older one. A durable item, such as solid furniture, may depreciate differently than clothing, electronics, small appliances, or consumables.
The hard part is that there is no single universal contents depreciation table used in every claim. Different teams rely on different references, and the final depreciation values can depend on the policy language, the carrier's guidelines, the public adjuster's approach, the item's condition, and the level of detail available in the inventory.
Common depreciation references
Several public and industry references are commonly used when teams think about depreciation. United Policyholders' Depreciation Basics discusses the role of depreciation in insurance claims and links to sample depreciation schedules. Industry publications, including schedules commonly referenced as CP-1 or CP-2, are also used as practical guides for personal property categories. The IRS publishes Publication 946, which explains depreciation for tax and business property.
Important context
These references are guides, not a substitute for the policy or claim-specific judgment. A depreciation rate that is reasonable for one carrier, policy, or claim file may need to be adjusted for another.
What changes depreciation in practice
A useful depreciation schedule should account for more than a single flat percentage. The most important inputs are usually:
- Age: how long the item has been owned or in use.
- Replacement price: higher-value items may need closer review, especially when the description is specific.
- Item type: electronics, furniture, clothing, tools, appliances, and collectibles do not age the same way.
- Condition and documentation: photos, video, receipts, model numbers, and visible wear can all affect the final result.
- Policy and claim handling standards: the carrier, public adjuster, jurisdiction, and policy terms may influence how depreciation is applied.
How InventoryQuant handles depreciation
InventoryQuant applies a set of industry-standard depreciation values based on age, price, and item type. The goal is consistency: similar items should be treated similarly, while expensive or unusual items still receive the attention they deserve.
At the same time, we know every customer and every claim workflow is different. Some teams want a conservative default schedule. Others need schedules that mirror a carrier's expectations, a public adjuster's standard process, or a policy-specific approach.
Custom depreciation schedules
If your team uses a custom depreciation schedule, InventoryQuant can work with you case by case. We can help map your preferred useful lives, category rates, item exceptions, and review rules into a repeatable workflow so depreciation is applied consistently across the inventory.
This is especially useful for public adjusters, inventory vendors, and teams that need different schedules for different carriers, policies, or claim types.
Talk to us
If you want custom depreciation schedules built into InventoryQuant, contact us at support@inventoryquant.com. We will review your current approach and help configure a schedule that fits your workflow.