Ark. Code Ann. » Title 23 Chapter 88
Arkansas Code Annotated

Ark. Code Ann. § 23-88-106 (2026)

Expense depreciation applicable when determining value of damaged property in insurance policies — Definitions

✓ current as of May 2026
Find cases: SyfertCases citing this section JustiaArk. Code CornellLII Search CasesGoogle Scholar
  1. 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.
  2. 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.
  3. 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.

History. Acts 2017, No. 279, § 1.

Subchapter 2 — Antiarson Applications

Cross References. Fire prevention, § 12-13-101 et seq.

Notes of Decisions
Cited in 6 cases (1 in the last 5 years), 2018–2021 · leading case: Stuart Ex Rel. Situated v. State Farm Fire & Cas. Co., 910 F.3d 371 (8th Cir. 2018).
Sort: Relevance Newest Treatment
Stuart Ex Rel. Situated v. State Farm Fire & Cas. Co., 910 F.3d 371 (8th Cir. 2018). “2013), superseded by statute , Ark. Code Ann. § 23-88-106 (a)(2) (2017) (expressly permitting insurance policies to account for depreciation of labor in calculating ACV after August 1, 2017).”
Sproull v. State Farm Fire & Cas. Co., 2021 IL 126446 (Ill. 2021). “” See Ark. Code Ann. § 23-88-106 (a)(2) (West 2017).”
Sproull v. State Farm Fire & Cas. Co., 2020 IL App (5th) 180577 (Ill. App. Ct. 2020). “3d 675 (cost of labor may not be depreciated when determining ACV under indemnity policy that does not define ACV), superseded by statute, Ark. Code Ann. § 23-88-106 (a)(2) (West 2017); see also 9 Indeed, depending on which dictionary is referred to, there are multiple…”
Sproull v. State Farm Fire & Cas. Co., 2020 IL App (5th) 180577 (Ill. App. Ct. 2020). “3d 675 (cost of labor may not be depreciated when determining ACV under indemnity policy that does not define ACV), superseded by statute, Ark. Code Ann. § 23-88-106 (a)(2) (West 2017); see also Wilcox v.”
Gregory J. Lammert v. Auto-Owners (Mut.) Ins. Co., 572 S.W.3d 170 (2019). “2013), superseded by statute , Ark. Code Ann. § 23-88-106 (a)(2). In that case, the Arkansas Supreme Court determined that both parties presented tenable interpretations of the term "actual cash value," thus making the term ambiguous.”
Lorine Mitchell v. State Farm Fire & Cas. Co. (5th Cir. 2020). “2013), superseded by statute, Ark. Code Ann. § 23-88-106 (a)(2). State Farm’s definition of ACV instead views “depreciation” as the reduction in the appraised or market value of the roof prior to the damage.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.