Tag Archives: Replacement Cost

Replacement Cost Value After Denial

Recently, I was asked, “if an insurer initially denies a claim and then later pays or is forced to pay, do they have to pay actual cost value, or replacement cost value?” After a little research on the topic, the old joke, if you ask a lawyer a question, their favorite answer is always, “it depends,” … Continue Reading

“Replacement” is a Condition Precedent to Recovering “Replacement Cost” in Kentucky

Insurance policies may provide several methods to calculate the amount it will pay an insured for a loss. The term replacement cost will be defined or explained in the policy. In a recent federal district court case in Kentucky, Hampton v. Safeco Insurance Company of America,1 the court addressed the meaning of the term “replacement … Continue Reading

Nationwide’s “Brand New Belongings”- Cool Commercial, But What Does It Cover?

Like me, you’ve probably seen Nationwide Insurance’s widely aired commercial touting their service, "Brand New Belongings." The eye-catching ads feature a sleek Cat-Women-like heroine coming to the rescue in every homeowner’s worst nightmare situations, stealthily following behind home-invading thieves to replace the items they steal, or swinging into a fire-damaged apartment to switch out smoke-damaged … Continue Reading

Florida Homeowners Are Entitled to Replacement Cost Without First Entering Into a Contract or Incurring the Costs

In property insurance claims, insurers will often pay for repairs at actual cash value (withholding depreciation) and inform the policyholder that once the repairs are actually made or contracted for they will pay the holdback amount and receive the replacement cost value (“RCV”). In Florida, residential policyholders insured under replacement cost value policies are entitled … Continue Reading

In California, Homeowners Insurance Policies Must Disclose What Kind of “Replacement Cost” Coverage Exists for the Insured

After a property loss occurs, an insured is always responsible to show the amount of loss claimed. We are often asked whether a policy covers "replacement cost" value (RCV) or "actual cost" value (ACV). Although an insured may not be familiar with these terms, the RCV versus ACV valuation of property can determine whether an … Continue Reading

Understanding the Importance of “Replacement Cost Value” Coverage, Part Two

In my last post, Understanding the Importance of “Replacement Cost Value” Coverage, I explained that insurers are not permitted to withhold any depreciation under replacement cost value coverage for personal property claims. This post highlights a recent change to Florida Statute § 627.7011, which took effect May 17, 2011, and alters the payment of dwelling … Continue Reading

Understanding the Importance of “Replacement Cost Value” Coverage

In Florida, except under certain circumstances, in an “actual cash value” policy, the carrier withholds depreciation through the indemnification process. For an additional premium amount, policyholders can purchase “replacement cost value” coverage which requires insurance companies to replace the damaged property with the full value of replacement. For example, a television valued at $1,000 is … Continue Reading

Court Holds That Policyholders Are Entitled to Actual Cash Value Of Damages After Sale Of The Property

In a recent case, a Louisiana Court of Appeal decided, among other issues, what damages policyholders were entitled to in a Hurricane Katrina claim. That sounds like a typical scenario, however to add some spice to the mix, the policyholders had sold the property following the loss. The case is Jouve v. State Farm Fire … Continue Reading

Hail Damage In Colorado and Replacement Cost Insurance Policies

(Note: This Guest Blog is by Erin Kristofco, an attorney with Merlin Law Group in the Denver, Colorado, office). Home and business property owners who suffered hail damage during Colorado’s hail storms must determine whether their property insurance policy requires the insurer to replace not only the hail damaged surface, but also any substrate, insulation … Continue Reading

A Replacement Cost Amendment in the Right Direction-A Little Love on Valentine’s Day

Replacement cost, actual cash value, and total loss valuation payment definitions, procedures and issues are currently being debated before the Florida legislature. In Draconian Property Insurance Bill Filed in Florida Senate, I explained that the pending legislation was against policyholder interests. Our firm has other posts on this debate: The Industry’s Greatest Fear is an … Continue Reading

Draconian Property Insurance Bill Filed in Florida Senate

Senate Bill 408 proposes new Florida insurance laws that harm all policyholders. Florida businesses and homeowners will receive fewer benefits, and insurers will be encouraged to delay, deny and defend claims if this bill becomes law. It takes away a lot of financial peace of mind that insurance currently provides.… Continue Reading

The Initial Political Insurance Views of Public Adjuster Frank Artiles

The Colodny, Fass, Talenfeld, Karlinsky & Abate law firm sent a newsletter regarding Freshman House Representative Frank Artiles’ recent teleconference. In "Freshman State Representative Frank Artiles, a Public Adjuster, Meets With Florida Insurance Industry Representatives On Concerns, Commonalities" the lawfirm noted the following:… Continue Reading

Double Recovery and Actual Cash Value Analyzed in Katrina Wind Flood Scenario

Policyholders with flood and all risk policies usually do not have as many problems collecting benefits following a hurricane where wind and flood damaged a structure. Those with only one policy are not so fortunate. When the combination of payments from both policies is less than the cost to repair or when delays in payments … Continue Reading

Actual Cash Value Defined by Texas Courts

During a recent mediation, my client was adamant that he was entitled to sufficient insurance money to repair his home. I informed him that his policy was an Actual Cash Value policy, rather than a Replace Cost Value policy, but my explanation was met with a blank stare. It then occurred to me that perhaps … Continue Reading

QBE Insurance Case Rewrites Replacement Cost Adjustment

What judges say is contemplated under an insurance policy is not always what adjusters are taught and do in the field. Jeremy Tyler noted in Prevention of Performance with Replacement Cost Value, that a new appellate decision involving QBE rewrites how insurance companies may adjust property losses in Florida. Many will read Buckley Towers Condo., Inc. … Continue Reading