Archives: Replacement Cost

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Scope of Recoverable Damages: District of New Jersey Finds Insureds Not Entitled to Replacement Cost Value Until Damaged Property is Repaired or Replaced

Property insurance policies typically require that the insured repair or replace damaged property before recovering on a replacement cost value (RCV) basis. Until then, the insured is entitled only to the actual cash value (ACV) of the damaged property. The U.S. District Court for the District of New Jersey recently decided a case involving the … Continue Reading

General Contractor Overhead and Profit Ruling Issued by Florida Supreme Court

The Florida Supreme Court recently joined numerous other jurisdictions holding that general contractor overhead and profit should be included in an estimate on a property insurance claim when, based on the unique facts of the claim, it is reasonably likely that the insured will need to use a general contractor in completing the repairs. In … Continue Reading

Enforceability of 180-Day Requirement for Recovering Replacement Cost Holdback Addressed By Southern District of New York

A federal court in New York recently cast light on the permissibility of property insurance policy provisions that require an insured to repair or replace damaged property within a certain period of time in order to be compensated for the full cost of the repair or replacement, instead of just the actual cash value of … Continue Reading

Potential Conflict Between Suit Limitation Period And Replacement Cost Holdback Under New York Law: Second Circuit Certifies Question

The Second Circuit recently certified an important question to the New York State Court of Appeals, which, while presented in a remarkably straightforward manner, will likely have anything but a straightforward answer: If a fire insurance policy contains (1)  a provision allowing reimbursement of replacement costs only after the property was replaced and requiring the … Continue Reading