MS SB2492

Defines "depreciation" as loss of property value over time due to age, utility, demand, obsolescence, and wear and tear, including costs for goods, materials, labor, services, fees, permits, and taxes needed to replace or repair damaged property

Allows depreciation to be applied in property damage insurance claims

Requires insurance policies to clearly state if labor depreciation will be applied to property loss claims, except for motor vehicles, watercraft, and personal property which may use market value or actual cash value without depreciation reference

Requires insurers to provide written explanation or calculation to the insured showing how depreciation was applied to property damage losses

Takes effect July 1, 2018