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Ark. Code § 23-88-106 : PUBLIC UTILITIES AND REGULATED INDUSTRIES — INSURANCE — PROPERTY INSURANCE — GENERAL PROVISIONS —88-106 - Expense depreciation applicable when determining value of damaged property in insurance policies - Definitions
(a) As used in this section:
(1) "Damaged property" means a damaged dwelling, a damaged structure, damaged personal property, or any other damaged property or service, the damage to which is covered under the terms of an insurance policy; and
(2) "Expense depreciation" means depreciation, including but not limited to the cost of goods, materials, labor, and services necessary to replace, repair, or rebuild damaged property.
(b) An insurance policy covering damaged property:
(1) May allow for expense depreciation; and
(2) Shall provide notice within the insurance policy in a form approved by the Insurance Commissioner that expense depreciation may be deducted.
(c) If expense depreciation is applied to a loss for damaged property, the insurer shall provide a written explanation as to how the expense depreciation was calculated.
