actual cash value News

Appraisals, Water Damage Fraud Among ‘New Normals’ Discussed at PLRB

SAN ANTONIO, Texas — The use of appraisals to resolve insurance claims disputes is the new normal, even though insurers don’t trust the process to bring about a fair result, an attorney and a claims examiner said Monday during the …

Property Insurance Reform Bill Dies as Fla. Legislative Session Draws to a Close

With just two days left in the 2022 Florida legislative session, a comprehensive property insurance reform bill appears to be dead. But lawmakers were said to be looking for ways to fold some of the main provisions into other bills …

6th Circuit Approves Class Action for Ky. Underpayments by State Farm

A federal appellate court has cleared the way for a class-action lawsuit to proceed against State Farm Fire and Casualty Insurance Co. that may force the insurer to correct underpayments paid to some 65,000 policyholders. A 6th Circuit Court of …

6th Circuit Affirms Class Action Suit to Collect Underpayments by State Farm

A federal appellate court has cleared the way for a class-action lawsuit to proceed against State Farm Fire and Casualty Insurance Co. that may force the insurer to correct underpayments paid to some 65,000 policyholders. A 6th Circuit Court of …

6th Circuit Sides With Policyholder in Depreciation for Labor Costs Dispute

Ohio law does not allow Allstate to include labor costs when calculating the amount of depreciation for a property damage claim, a split panel of the 6th Circuit Court of Appeals ruled, resolving a split among state appellate districts and …

N.C. High Court: Actual Cash Value Includes Depreciation for Labor Costs

An insurer whose policy covers the “actual cash value” of a property may deduct for depreciation of labor costs when it calculates the amount of the loss, the North Carolina Supreme Court ruled. The court noted that the question of …

Paying Overhead and Profit in First-Party Claims

Standard homeowner policies pay personal property claims at actual cash value (ACV), which is the replacement cost (RC) of the damaged property based on its current used condition. In other words, it is valued at what it would cost to …

Arkansas High Court Rules No Depreciation of Labor in ACV Claim

An insurer can’t depreciate labor in calculating the actual cash value (ACV) of an insured property in the event of a covered loss, Arkansas high court justices have determined. In an opinion delivered on Dec. 10, 2015, the Arkansas Supreme …

Recovery of Sales Tax After Vehicle Total Loss

Approximately 12 to 14 percent of all accidents result in a total loss, a number which has been trending upward since 2002. Insurance companies faced with first party claims on policies are responsible for paying the actual cash value or …

A National Loss Study: The Billion Dollar Impact of Underestimated Roof Age

“I don’t know how to put this, but I’m kind of a big deal.” – Ron Burgundy, Anchorman: The Legend of Ron Burgundy Houses are getting older; the median age of a home in the U.S. is steadily increasing, with …