A comprehensive exploration of the concept of deterioration, its historical context, types, key events, explanations, models, and real-world applications.
Physical Depreciation refers to the natural wear and tear on a property over time, with a focus on the exclusion of external factors like obsolescence or market environment.
Wear and tear refers to the gradual degradation of equipment or assets due to regular use, which is not typically insurable and is excluded from manufacturers' warranties. It's a significant cause of capital consumption alongside accidents and obsolescence.
Normal wear and tear refers to the natural and expected decline in the condition of an asset due to age and regular use. This concept is pivotal in various fields including real estate, accounting, and insurance.
An in-depth exploration of the wear and tear exclusion in insurance policies, covering its definition, how it functions, and common disputes during claims.
