In a paper worthy of law review publication, Michael Cassel has written an excellent review of Florida’s changing law regarding replacement cost and actual cash value. Exploring The Application of Actual Cash Value Versus Replacement Cost Value in Florida Property Insurance Claims, is a must read for anybody wanting to have a full understanding of Florida’s somewhat complex and changing treatment of replacement cost recovery versus actual cash value.
Continue Reading Florida Replacement Cost and Actual Cash Value: A Study by Michael Cassel

The typical property insurance policy allowing for replacement cost valuation is often taken for granted today. A hundred years ago, the product was commercially unavailable.  Concerns for incenting the policyholder to commit fraud and arson was a primary concern disallowing the replacement cost product to be sold.
Continue Reading Replacement Cost Policies Were Originally Illegal Out of Concern For Fraud and Arson

Florida is becoming much stricter regarding actual cash value proof. I recently warned about this in Actual Cash Value Proof Is Important Under Most Replacement Cost Policy Disputes. My assumption is that insurance defense lawyers are teaching their insurance company adjusters that some less savvy policyholders, restoration contractors, lawyers, and public adjusters are missing this basic requirement. A good example where a policyholder needlessly lost a case is from a common Hurricane Sally lawsuit involving a Presbyterian church versus Church Mutual Insurance Company.1
Continue Reading Actual Cash Value Estimates Need To Be Made In Florida—How A Church Lost To Church Mutual

The law firm that defended Scottsdale Insurance Company in the bad faith verdict I wrote about in Hurricane Laura Bad Faith Verdict Against Scottsdale Insurance, has a blog that noted the rules for payment of replacement cost value and actual cash value. This seemed to be a major theme throughout the lawsuit since Scottsdale claimed it was properly paying actual cash value payments in a timely manner.
Continue Reading Louisiana Insurance Company Law Firm Posts About Replacement Cost Value and Actual Cash Value

Replacement costs policies are supposed to pay replacement cost benefits, right? The truth is that only a few very high-end replacement cost policies pay replacement cost benefits immediately following a loss. I suggest that you call Chubb and Amica if that is the type of policy you want or ask your agent to provide a replacement cost endorsement that pays for immediate replacement.
Continue Reading Actual Cash Value Proof Is Important Under Most Replacement Cost Policy Disputes

Material shortages and supply chain problems are wreaking havoc among those trying to repair and replace property following recent hurricanes, wildfires, floods, and other catastrophes. While the adjustment of property insurance claims is always a dynamic field, this covid supply chain problem is very new. One veteran public adjuster told me at the FAPIA conference last week that the property insurance claims business keeps him young because there is “a lot more new than old” and change is always occurring.
Continue Reading What About Price Increases Affecting My Insurance Claim? Replacement Cost Evaluation in An Age of Material and Supply Chain Shortages

A federal court ruling earlier this year discussed a fairly common scenario of an insurer claiming that no roof damage occurred and even if it did, the policyholder failed to introduce evidence of actual cash value because it only had a replacement cost estimate.1 The point of this post is to show that the safest way to present a property insurance claim in Florida is with a combined replacement cost estimate and an actual cash value estimate. However, fully understanding those concepts and Florida statutes on the subject is important.
Continue Reading Do You Have a Florida Property Insurance Dispute Over Valuation? Understand the Differences Between Replacement Cost Value, Actual Cash Value and How the Broad Evidence Rule Works

Mortgage servicers, banks, and their accountants must sign off under federal regulations that the loans that they package and are underwritten by Fannie Mae comply with certain requirements, including those involving insurance. If the mortgage does not have the proper insurance, it cannot be part of the Fannie Mae backed system. The Florida Senate passed insurance legislation which clearly jeopardizes the chances of home ownership by Floridians with a Fannie Mae mortgage because it is non-compliant. Worse is that when many Floridians buy that type of non-compliant insurance, they may have the additional burden and expense of the mortgage servicer adding force-placed coverage.
Continue Reading Florida Senate Passes Insurance Bill That Will Make Mortgages Non-Negotiable Under Federal Regulations