Case Study: Cutting Depreciation by $120K and securing $168K More for the Insured

How Traci Yearwood-Murphy of ALPHA Adjusting Secured a Win for Her Client

The Situation:  

When a significant property loss occurred, the insurance carrier initially overlooked a recent Illinois Supreme Court ruling and applied nearly $188,000 in labor depreciation, while also disputing whether essential brick replacement was required. For the policyholder, this would have resulted in a substantially reduced payout and fewer options to recover from their loss.

What is Depreciation, and Why Does it Matter?

Depreciation is “the reduction in an item's value over time due to age, wear and tear, and obsolescence.” An insured individual is entitled to the Actual Cash Value (ACV) regardless of whether repairs are completed. By reducing depreciation, Traci maximized the client’s initial recovery, providing them with significantly greater financial flexibility.

ALPHA Adjusting’s Traci Yearwood-Murphy

Traci is ALPHA’s Senior Property Claims Consultant & Public Adjuster. She is recognized for her straightforward advocacy, deep policy knowledge, and ability to advocate for clients, even in the most challenging situations. In this case, Traci was tasked with maximizing her client’s recovery while maintaining a professional and fair process. She was able to intervene on behalf of the client and obtain a significantly higher settlement.

What We Did, and How We Fought Back!

Traci’s success begins with an approach of building and maintaining close ties with attorneys and the Illinois Department of Insurance, ensuring she is always up to date on state rulings. In this case, she knew that the Illinois Supreme Court had ruled that labor depreciation could not be applied unless it was clearly defined in the policy.

During negotiations with the insurance company, Traci used her proven sequencing strategy: “I don’t like to battle depreciation and cost at the same time. First, I get agreement on replacement cost value, then I address depreciation.”

 Initially, the insurer resisted replacing the brickwork - until Traci brought in an engineer. Their expert opinion confirmed replacement was necessary, which was a turning point in the case. Traci did not overcomplicate the matter; she presented the report and then built her negotiation strategy around it. As she puts it: “You can’t go against engineers, and you must follow the court ruling.”

Traci is more than a strong advocate. She is a skilled strategist who balances assertive representation of her clients with genuine respect for adjusters and consultants. She builds trust through honesty, clear communication, and a commitment to educating others, particularly when working with out-of-state adjusters unfamiliar with Illinois-specific laws. Her reputation is built on good relationships without compromise: she never backs down when it comes to protecting the insured but always operates with integrity.

The Final Outcome:

1st Offer:          

$516,539.46 RCV (Replacement Cost Value)

($193,974.51) Depreciation

$322,564.95 ACV (Actual Cash Value)

2nd Offer (after rebuttal with the engineer’s opinion):

$558,749.48 RCV

($187,946.14) Depreciation

$370,803.34 ACV

3rd Offer (after raising the Illinois Supreme Court ruling):

$558,966.90 RCV

($67,628.34) Depreciation

$491,338.56 ACV

Extra Recovered: $168,773.61

Why This Matters:

Depreciation Reduced by Over $120,000: From an initial $188,000 to $67,000.

Maximized Recovery: This ensured the client received the highest possible settlement upfront, regardless of whether they chose to repair it or not.

Educated the Industry: Out-of-state adjusters left the negotiation with a better understanding of Illinois law, setting a precedent for future claims.

Client Confidence: Traci translated complex insurance terms into plain language, helping her client clearly understand the value of the ruling and their rights under ACV vs. RCV policies.

The ALPHA Difference:

This case reflects more than a single win. It is a shift in how claims are handled in Illinois. By applying the Supreme Court ruling strategically, Traci ensured that her clients received more on an Actual Cash Value basis than they would have historically and that the insurance company was held accountable for applying Illinois-specific law correctly, regardless of the origin of their adjusters.

This case is a powerful example of why clients trust Traci Yearwood-Murphy and ALPHA Adjusting. By blending policy expertise, strategic timing, and unwavering integrity, Traci not only secured a significant financial win for her client but also reinforced the importance of fairness and transparency in claims handling.

 At ALPHA Adjusting, Traci’s guiding principle is clear: “Knowledge, timing, and integrity win the day, and maximize recovery for the insured.”