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#2205491 - 02/08/19 04:15 PM Commercial flood coverage
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
On commercial property, can depreciation be taken off the value needed to be covered by flood insurance to get actual cost?

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Flood Compliance
#2205509 - 02/08/19 05:33 PM Re: Commercial flood coverage mdog76
rlcarey Offline
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Joined: Jul 2001
Posts: 79,633
Galveston, TX
I don't understand your question as presented. But Actual Cost Value = Replacement Cost Value minus Depreciation.
The opinions expressed here should not be construed to be those of my employer:

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#2205582 - 02/10/19 03:58 PM Re: Commercial flood coverage mdog76
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Coverage for non-dwelling properties (and even some dwellings) won't pay above Actual Cost Value (ACV). As Randy defined above, ACV is the Replacement Cost Value (RCV) less physical depreciation.

You might find our article "FLOOD: Flood Insurance Insurable Value Article" helpful. You can download it for free from our website. Go to:
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You'll see this position paper listed.
David Dickinson

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