Physical Depreciation Law and Legal Definition

Physical Depreciation is the result of deterioration of an asset due to age and wear. It results from use, decay and the action of the elements. Physical depreciation is a constant factor. It begins as soon as an asset is exposed to the action of the elements or is put into use. [Central R. Co. v. Martin, 30 F. Supp. 41, 60 (D.N.J. 1939)].