DEPRECIATION OF OLD PARTS FOR NEW PARTS

[BRUCE STEBICK]

I AM AN INSURANCE ADJUSTER. I'M HANDLING DAMAGES TO A 1973 SKYLINE. A CAR HIT IT AND SOME OF THE SIDING HAS TO BE REPLACED AS WELL AS COUNTER TOPS. THE SIDING HAS TO BE PAINTED.

tHIS IS A LIABILITY CLAIM. WHICH MEANS THE AT FAULT PARTY OWES THE ACTUAL CASH VALUE OF THE DAMAGE, NOT THE REPLACEMENT COST OF THE DAMAGE. FOR EXAMPLE, THE SIDING WAS OVER 30 YEARS OLD, SO NEW SIDING HAD TO BE ORDERED. wHAT KIND OF DEPRECIATION DO YOU TAKE FOR SUCH ITEMS? DOES ANYONE HAVE AN IDEA?

[David Oxhandler]

Bruce -

Use the same depreciation factors you would use for any framed home. manufactured homes are constructed a bit differently than site built homes, but the majority of the components are the same. That 73 Skyline most probably has 2x4 on 16 inch center wall framing. The siding is most likely aluminum vertical siding, which may not be found today. In the late 80's the siding manufactures switched to galvanized, which proved to be considerable less durable than the aluminum.

The life expectancy of aluminum siding? Tough question. I have a half dozen mobile homes built in the early 80s. The aluminum siding is a bit faded but has had little or no decrease in its effectiveness, here in balmy Florida. I would guess that the local climate would effect the real rate of depreciation.

Elixir Industries was a major supplier of aluminum siding to the manufactured housing industry and continues to produce aluminum building components. They would probably be best equipped to answer the life expectancy question.

Elixir Corporate Office
24800 Chrisanta Drive
Suite 210
Mission Viejo, CA 92691
http://www.elixirind.com
P: (949) 860-5000
F: (949) 860-5011

[BRUCE STEBICK]

thanks Dave. that will be a big help