Page 239 - Fire Insurance Ebook IC 57

The Insurance Times

depreciation deducted is higher. These cases are
discussed individually and mostly based on the surveyor's
reports.

Sometimes there is a partial loss on a building, there
arises various disputes. If minor repairs are required
and major replacements are not required, generally
depreciation is not deducted. If the repairs are
extensive, allowances are made for depreciation.

The factor of depreciation is important in assessment
of the building losses, especially in cases of old
buildings. The cause of deterioration in building
materials are caused by decay, corrosion, metal fatigue,
wear and tear, etc.

The type of material used in making the building also
are important factors. E.g, wood is subject to decay in
moisture and sunlight whereas iron is subjected to rust.

The use of the building also has some influence in

deterioration. E.g, heavy loads carried on floors wear

away the floors, whereas the vibrations of machineries

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