blown-fenceThis question came to us from one of our readers.

Question

My fence was partly blown down and I have that type of extended coverage. State Farm wants to replace part of the enclosure applying depreciation. Can I just get fence repair,therefore, no depreciation?

Answer

Depreciation is the difference between the cost to replace and the current value of an item.
For example, if someone has had a roof for 10 years and the roof life looks like it has another 10 years, deprecation would be 50%.

In your example if you were to have the fence replaced, depreciation would apply. But if there is only a repair then depreciation would not be applicable.