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A WA state insurance property adjuster said state law requires them to depreciate labor. Is this the case? Any st requirements?

Yakima, WA |

I understand that depreciation is applied to materials based on age and useful life but have never heard of depreciation being applied to labor and/or demo. How can you depreciate labor that is taking place at that moment? I was an adjuster in another state for the insurance company in question prior to working as a contractor in WA and we were taught to never depreciate labor. Any input would be greatly appreciated.

Attorney Answers 2


I am not clear about the nature of your case, but perhaps this provides some guidance.

I would ask the adjusted for any statutory, admin, or case law guidance that supports the position taken. Let me know how that goes.

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That position makes no sense to me. Start with the policy provisions and look for language authorizing that type of depreciation. I doubt you will find any. Then either consult with an experienced attorney or give the WA State Insurance Commissioner's office a call and get some guidance there.

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