Shane Smith wrote about a big policyholder win against Allstate in this weekend’s post, Another Court Ruling on Improper Depreciation of Labor. Today, the same Court of Appeals ruled the same way against State Farm.1
Continue Reading Hot Off the Insurance Law Coverage Press—DO NOT DEPRECIATE LABOR TO ARRIVE AT ACTUAL CASH VALUE!


Property which simply wears out or is damaged by rot is never covered, right? That is what most insurance company adjusters and attorneys will say. Indeed, they will defiantly state something like: “This is a property insurance policy and not a maintenance contract.”

So, what happens if the damaged portion of the property cannot be repaired because the underlying property has pre-existing rot or is simply worn out?
Continue Reading Repairability of Damaged Portions of a Structure: Is Rot or Wear and Tear Always Excluded?

Whether labor can be depreciated in arriving at an actual cash value property loss settlement has been a hot topic of debate over these past five years. A federal district court in Ohio recently weighed in on the issue in ruling on motions to dismiss two putative class action lawsuits, one against State Farm Fire & Casualty Company1 and one against Allstate Indemnity Company.2
Continue Reading Federal District Court Weighs in on Whether Labor Can Be Depreciated in Arriving at an Actual Cash Value Loss Settlement

The Rigsby sisters have now prevailed in the highest court of the land in their decade long fight against State Farm.1 The Rigsby sisters were catastrophe adjusters working for State Farm on Hurricane Katrina claims. I have noted this case for some time:


Continue Reading State Farm Claims Whistleblowers Win in United States Supreme Court and May Get Additional Evidence of Wrongdoing

Insurance companies routinely have instructions for their claims adjusters on how to adjust various types of losses. State Farm has some of the most detailed claims guidelines in the industry. I have often stated that for first-party claims, relevant claims guidelines should also be provided to the policyholders who suffer losses. Why not?


Continue Reading State Farm Operation Guidelines Regarding Wind and Hail Damage to Composition Roofs