On March 30, 2020, the United State Court of Appeals for the Fifth Circuit issued an opinion in Mitchell v. State Farm Fire & Casualty Company,1 on the interpretation of the term “Actual Cash Value.”
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What Do Chip Merlin’s Old Dress Shoes, New Sailing Shoes, and Weber Grill Have to Do With Replacement Cost Value, Actual Cash Value and Depreciation of Labor?
What is the replacement cost value of my classic brown dress shoes? How would you go about determining their actual cash value? You can see them in the photo above along with some Sperry Topsider shoes I have yet to take out of the box. As I am writing this post, I am looking at my Weber gas grill which has been getting a workout since our social distancing started. What questions and considerations should be made for that item in a property insurance adjustment? How are those questions and considerations different when considering replacement cost value and actual cash value if the damage were to real property? What are the considerations if the loss were to a commercial insured rather than covered under a personal property insurance policy?
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Does North Carolina Allow Depreciation of Labor When Determining Actual Cash Value?
Depreciation of labor when determining actual cash value is being raised in cases throughout the country with mixed results. In,
Tennessee Tornado Terror and The Insurance Claim Aftermath, I noted that Tennessee recently ruled labor will not be deprecated for tornado policyholders. So, what would be the result if those tornados had gone slightly east and hit North Carolina? Does North Carolina allow insurance companies to depreciate labor of a structure to arrive at actual cash value?
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Impossibility to Comply: When an Insurance Company’s Conduct Frustrates the Insured’s Ability to Satisfy the Precondition
Property Damage attorneys will occasionally run into dispositive motions filed by Insurance Company attorneys looking to dismiss the lawsuit based on the following language from the policy’s loss settlement provision:
We will pay no more than the actual cash value of the damage until actual repair or replacement is complete
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How Playing the Float, Taking Depreciation on Labor or Tear Out Is Needed Cheating For Many Insurance Companies
Depreciation is a major topic with property insurance. It seems like such a “nickel and dime” way to increase profits. So, why are property insurance companies now doing this and having their hired gun attorneys argue that this is the correct way to adjust claims?
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Can Labor Be Depreciated? Class Action Lawsuit Cites this Blog!
A class action lawsuit filed against Allstate in South Carolina raises the newly raised practice by some insurers of depreciating labor when repairs are made.1 I thought that the lawsuit was very well plead and was surprised to see citations to a law review article written in part by public adjuster Don Wood, and another citation to the Property Insurance Coverage Law Blog.
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Calculating Actual Cash Value in South Carolina
South Carolina courts have not used the phrase “broad evidence rule” in addressing actual cash value, and the South Carolina Department of Insurance considers actual cash value to be the amount needed to repair or replace the damage minus a deduction for depreciation.1
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Pending California Property Insurance Legislation – A Continued Expansion of Insured’s Rights
The string of natural disasters that struck California in 2017 and 2018 resulted in new legislation expanding the rights of California policyholders. The California legislature has drafted and introduced new legislation that would continue to expand policyholders’ rights.
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Dispute Whether Contractor Overhead & Profit Should Be Included in Actual Cash Value Payment Will Be Decided by State Supreme Court
The Pennsylvania Supreme Court recently agreed to hear argument on the matter of Kurach v. Truck Insurance Exchange.1 Merlin Law Group blogged about this class action lawsuit back in May of 2017 and the link can be found here.
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Am I Covered For Water Loss To My Home? Don’t Trust Advertising Lawyers and Find Quality Professionals To Help If Your Insurer Says “No” To Coverage
The recent blog post, My House Has Suffered Water Damage, Am I Covered? suggested to hire a licensed public adjuster, or an attorney if the claim was denied, to help you with a water loss claim. This led me to question, “how anybody would find a quality public adjuster or attorney?” The common answer in today’s computer age is to “Google” a phrase like “water loss in home public adjusters and attorneys.”
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