Stemming from the McCarran-Ferguson Act of 1945, insurance is regulated by the states. Knowing variations of the law and regulations is a necessity for insurance professionals crossing state lines. These state-by-state variations in law include the basics, such as determining replacement cost and actual cash value.
Continue Reading Calculating Actual Cash Value and Depreciation in California

A routine roof claim has significant results for Missouri property insurance adjustment. Some insurance companies try to chisel away at amounts owed by making up new arguments and pressing them in court. A Missouri appellate court had none of that, holding insurers should not deprecate labor when calculating actual cash value.1
Continue Reading Do Not Depreciate Labor When Calculating Actual Cash Value—Missouri Appellate Court Upholds Policyholder Win

When it comes to determining actual cash value and whether labor can be depreciated in Kentucky, do what insurance education Bill Wilson teaches and RTFP—Read the Full Policy. While a favorable Kentucky federal opinion ruled that depreciation could not be depreciated, it did so on the basis of ambiguity in the policy.1 It left open the question of whether the Kentucky Department of Insurance would allow insurers to have their policies.
Continue Reading Depreciation of Labor in Kentucky—Read the Policy!

Insurance companies will no longer be able to write insurance policies which depreciate labor costs when determining actual cash value in Washington. The Washington Insurance Commissioner just made a rule preventing insurance companies from nickeling and diming of their customers by depreciating labor costs. This ruling becomes effective on January 1, 2022.
Continue Reading Can Insurance Companies Depreciate Labor Costs in Washington? Insurance Commissioner Stands Up For Policyholders

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 six years, and the subject of many Merlin lawyer blogposts, including the one I wrote last July discussing the Appellate Court of Illinois opinion in Sproull v. State Farm Fire & Casualty Company.1
Continue Reading The Illinois Supreme Court Concludes That Labor Cannot Be Depreciated In Arriving At An Actual Cash Value Loss Settlement

Louisiana Act 345 will have an immediate impact on Louisiana property insurance claims from Hurricane Ida. The law just became effective on August 1, 2021, without much publicity. Hurricane Ida has done significant damage in Louisiana, and everybody involved in the claims process should carefully consider this new law.
Continue Reading New Louisiana Property Insurance Law Impacts Hurricane Ida Claims

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, and the subject of many Merlin lawyer blogposts. An Illinois appellate court recently weighed in on the issue in Sproull v. State Farm Fire and Casualty Company.1
Continue Reading An Illinois Appellate Court Concludes That Labor Cannot Be Depreciated In Arriving At An Actual Cash Value Loss Settlement

I’ve run into this situation a handful of times recently in the Naples/Fort Myers area following Hurricane Irma. Generally, the policyholder is a retiree with ample spare time on his hands, a bit handy, and takes on the task of performing mostly cosmetic interior repairs himself (e.g., painting, drywall, flooring).
Continue Reading I Performed The Work Myself, Am I Entitled To Labor Costs?

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?
Continue Reading 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?