MS HB815

Allows depreciation to be applied in insurance claims for property damage, defined as loss of value over time due to age, wear and tear, obsolescence, and includes costs of replacement materials, labor, services, fees, permits, and taxes.

Requires that if depreciation of labor is applied to a property loss claim, the insurance policy language must clearly state this provision.

Exempts insurance policies covering motor vehicles, watercraft, recreational vehicles, motorcycles, boats, and personal property from depreciation requirements, allowing them to use market value or actual cash value evaluation instead.

Mandates insurers provide written explanation or calculation to the insured showing how depreciation was applied to property damage claims.

Takes effect July 1, 2018.