In Redcorn v. State Farm Fire & Casualty Company,1 the insured’s roof was damaged by wind or hail. Although the policy did not define “actual cash value,” it contained an endorsement entitled Roof Surface Losses—Actual Cash Value Endorsement, which provided for roof surface repair and replacement coverage on an actual cash value basis:

Roof Surfaces: We will pay the actual cash value at the time of loss for loss or damage to roof surfaces. We will not pay an amount exceeding that which you actually and necessarily spend to repair or replace the damaged roof.

Continue Reading Calculating Actual Cash Value, Part 22: Oklahoma

In Balestrieri v. American Home Assurance Company,1 the plaintiff’s home was destroyed by a fire. At the time of trial, she had been paid over $900,000 based on the estimate of the house’s actual cash value, however she contended that the clear weight of the evidence demonstrated her entitlement to approximately $400-500k more than the insurer already paid. The jury instruction was as follows:

Continue Reading Calculating Actual Cash Value, Part 20: North Carolina

A Maryland Supreme Court opinion, Schreiber v. Pacific Coast Fire Insurance Company,1 is where we look for a discussion on the calculation of actual cash value in Maryland. Here, a dwelling house was partially damaged by a fire. The parties allowed their dispute on valuation to be submitted to arbitration. The appraisers had disagreed on the cash value of the property and had called in an umpire. The two appraisers and umpire then set down their own figures, added them, divided by three and then agreed upon that figure as the combined judgment of the three. The Court held that the appraisal was not invalid, in absence of evidence they had agreed to be bound by result of their computations.

Continue Reading Calculating Actual Cash Value, Part 16: Maryland