Joint Military/Industry Table of Weights and Depreciation Guide
About: Regarding damage claims for military moves, while most DOD claimants will be compensated at full replacement value, there will continue to be some occasions requiring indemnification for loss at actual cash value—defined as replacement cost (new) less depreciation. To assist in the calculation of actual cash value, the military and the carrier industry jointly developed and have long made use of the Joint Military/Industry Table of Weights and Depreciation Guide (JMITWDG), last published by the American Moving & Storage Association (AMSA) in 2000. The JMITWDG contains a Table of Weights used in claims processing by the military and industry, but not used by appraisers. But the JMITWDG also contains depreciation rates for numerous categories of personal property, and it is this section, referred to as the Joint Military/Industry Depreciation Guide (JMIDG) that is of interest to the appraiser.
The JMIDG is a compilation of rates of depreciation agreed upon by the military and the carrier industry for nearly any category of household goods. The JMIDG lists percentage depreciation for the first year in use, for subsequent years, and a maximum depreciation allowed regardless of years in use. Some articles are given a flat depreciation (e.g., dried flower arrangements are depreciated at a flat 25% regardless of age).
Damage claims adjusters first apply the JMIDG’s annual rates of depreciation to the property. The resulting depreciation is then subtracted from the replacement cost (new) of the property in order to calculate actual cash value, i.e., the value of the property based on its remaining useful life. The JMIDG assumes that the items have been subjected to average care and/or usage. Note that the JMIDG does not apply to items that appreciate in value such as antiques and collectibles, but rather only to depreciable property.
Note that the Joint Military/Industry Table of Weights and Depreciation Guide is considered by the military services as well as the carrier industry to be a valid compilation of commonly-accepted item weights and item rates of depreciation for subrogation purposes for depreciable personal property. In that regard, the JMITWDG is cited in Code of Federal Regulations 32 C.F.R. (Subpart B — Demand On Carrier, Contractor, or Insurer) and 32 C.F.R. Part 751 — (Personnel Claims Regulations) and is required to be used in conjunction with the Allowance List-Depreciation Guide (ALDG) by all branches of the military. (While the JMITWDG is used to determine third party liability (i.e., the amount the military will subrogate against the carrier for damages claimed as being carrier-caused), the ALDG is used by the military services to determine the maximum payout to claimants.)
To assist in calculating ACV for a large number of items of depreciable personal property, Maloney’s ACV Calculators (three Excel spreadsheets which make use of the depreciation rates contained in the Joint Military/Industry Depreciation Guide (JMIDG)) will be helpful. Obtain a copy of all three Maloney’s ACV Calculators (Basic, Premium and Premium Plus) here.
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