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 15559 … Continue Reading
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 to instances … Continue Reading
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 … Continue Reading
