This blog marks the halfway point in this blog series as we are on the 25th state.

In New Mexico, actual cash value is the “fair market value” of the property.

In Roswell Trailers, Inc. v. Potomac Ins. Co., 1978-NMSC-027, 91 N.M. 502, 576 P.2d 1133 (1978), an inland marine all-risk floater insurance policy insured inventory of mobile home units that were damaged by the second of two hailstorms. Evidence supported findings that the actual cash value of the mobile homes after the hail damage was their expected retail sales price and that the actual cash value of the homes after hail damage was the discounted amount for which they were sold by insured. The court held that the insured business was entitled to the difference between the actual cash value of the damaged units before the loss and the actual cash value of the units after the loss where the difference between those two figures did not exceed the net cost of replacement of any damaged unit.