Foushee is a commercial building owner who was submitting a loss of rents claim. Insurers will frequently tell you that depreciation is a saved expense because either the asset was destroyed or the idle period following the event extended the useful life of the assets that weren’t destroyed. Foushee is one of our clients who took a different view.
Whether or not depreciation is recoverable is one of the oldest and most hotly contested elements of a business interruption loss. Since there is no definitive answer, the loss associated with each asset must be evaluated on a case-by-case basis. With Foushee’s claim, we helped them do just that.
We have a fantastic reference letter related to this project. We’d love to share it with you.