In a putative class action pending Arkansas federal court, a question of law was certified to the Arkansas Supreme Court regarding whether labor may be depreciated on property insurance claims, if the insurance policy does not define the term “actual cash value” (see my May 8, 2013 blog post on the federal court’s certification of
Actual Cash Value (ACV)
Dispute Over Actual Cash Value, Replacement Cost Value, and Inclusion of Law & Ordinance Costs in Loss Measurement: Ninth Circuit Weighs in on California Law
By Guest Contributor on
Posted in Loss Measurement
The difference between Actual Cash Value (“ACV”) and Replacement Cash Value (“RCV”), and whether increased costs to comply with building codes are part of RCV can be significant in cases involving a proper loss measurement determination. In Sierra Pacific Power Company v. Ram Hartford Steam Boiler Inspection & Insurance Company, 2012 U.S. App. LEXIS…
Judicial Review of Appraisal Awards: Sixth Circuit Identifies Proper Standard of Review Under Michigan Law
By Caryn Daum on
Posted in Appraisal
As previously mentioned in my blog posts on May 3, 2012 and May 17, 2012, courts are frequently asked to determine whether an appraisal award should be overturned or vacated. Recently, the United States Court of Appeals for the Sixth Circuit held that, under Michigan law, judicial review of an appraisal award is limited…
Insurance Company’s Waiver of Right to Pay Actual Cash Value (ACV)
By Caryn Daum on
Posted in Loss Measurement
Property insurance policies typically require that the insured repair or replace the damaged property before recovering on a replacement cost value (RCV) basis. The difference between RCV versus actual cash value (ACV) can be substantial, especially where an older building is involved. The Indiana Court of Appeals recently held that an insurer can waive its…