In Lains v. American Family Mutual Insurance Company,1 a federal district court in Washington considered two issues involving actual cash value:
- whether American Family improperly considered age in depreciating the insureds’ personal property loss, and
- whether American Family improperly depreciated labor costs as applied to the insureds’ dwelling loss. The American Family policy defined “actual cash value” as “the amount it costs to repair or replace property with property of like kind and quality less depreciation for physical deterioration and obsolescence.”
The policy did not define the term depreciation.Continue Reading...