Depreciation for wear and tear
The reduction applied to property for age and wear, deducted from the indemnity in the name of the indemnity principle.
No standard governs depreciation scales in France: each insurer applies its own, commonly on the order of 1 to 2% per year of age, capped between 25 and 30%. The French insurance ombudsman service, in its present form since 2015, comes back to it in its annual reports as one of the leading grounds of referral in property claims. Depreciation for wear and tear is the value property has lost between purchase and loss, through age, wear and obsolescence. It is deducted in the name of the indemnity principle: paying new for an item that was no longer new would enrich the policyholder, and insurance law has barred profiting from a loss from the start. The lack of a common scale makes it the steadiest friction point in household claims. On the same fifteen-year-old roof, two insurers can apply deductions that differ twofold, with no text able to say which one is wrong. The amount deducted is not necessarily gone for good: replacement cost cover can pay it back, usually on condition that the policyholder actually rebuilds.
No standard governs depreciation scales in France: each insurer applies its own, commonly on the order of 1 to 2% per year of age, capped between 25 and 30%. The French insurance ombudsman service, set up in its present form in 2015, returns to the topic every year in its annual reports: it is one of the leading grounds of referral in property claims.
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