alan kostrubanic asked 1 month ago A contractor damaged the fabric covering on my retractable awning. The awning is approximately 18 years old but was fully functional and in good condition prior to the damage.
The cost to repair the awning is $3,200, which includes approximately $1,000 for labor and shipping.
How much am I entitled to recover from the contractor for the damage? Should depreciation be applied based solely on the age of the awning even though it was functional and only the damaged covering needs to be repaired?
Jade Bentz Expert answered 1 month ago Hi Alan,
Typically liability claims, such as a contractor causing damage, are only recoverable at actual cash value (also known as the depreciated value). However, depreciation should be based upon age, condition AND obsolescence, and generally should only be applied to the material and not the labor. If the awning was still in good working order, functioning as its intended purpose, and maintained, the depreciation applied should be a reasonable and arguably minimal amount to the material portion of the replacement cost.
Kindly, Jade