News & Analysis as of

Replacement Costs

J.S. Held

Builder’s Risk: Complexities in Insuring Existing Structures

J.S. Held on

Property insurance for projects under construction can be significantly complex. Insuring renovation projects under a builder’s risk policy will often require more care in crafting a policy that provides adequate protection....more

Harris Beach Murtha PLLC

Understanding the 2025 Changes to New York’s Freshwater Wetlands Regulations

As previously described in a Jan. 12, 2024 legal alert and a July 12, 2024 legal alert, the New York State Department of Environmental Conservation (DEC) promulgated amendments to freshwater wetlands regulations, changing 6...more

Zelle  LLP

Homeowners Did Not Substantially Meet Policy’s Condition Precedent to Recover Replacement Cost Value

Zelle LLP on

Property Insurance/Replacement Cost - Homeowners Did Not Substantially Meet Policy’s Condition Precedent to Recover Replacement Cost Value - Insurer Did Not Waive Conditions - Henderson v. State Farm Fire and...more

J.S. Held

A Comprehensive Guide to Substantial Structural Damage: Criteria, Repairs, and Code Compliance

J.S. Held on

Introduction: Substantial Structural Damage and Its Impact on Building Repairs - Substantial structural damage (SSD) is a defined term within the International Code Council (ICC) building code library, which assesses the...more

J.S. Held

A Comprehensive Look at Building Safety Regulations and Florida Milestone Inspections (2nd Edition)

J.S. Held on

Florida Chapter 2023-203: Ensuring Building Safety in the Wake of Tragedies - It often takes a crisis for society and government to react. Whether it be seat belts, smoking, or building safety, unfortunately, catastrophe...more

Proskauer - California Employment Law

Broadway Actor’s Race Discrimination Claims Sent Back to the Underworld in the Face of Producer’s First Amendment Rights

A federal court in New York has held that a Broadway musical’s casting decisions—specifically replacing one actor with another actor of a different race—are shielded by the First Amendment from employment discrimination...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Lead Service Lines/Drinking Water: Internal Revenue Service Determination Addressing Exemption of Replacement Cost

The United States Internal Revenue Service (“IRS”) addressed the federal income tax treatment of certain lead service line replacement programs for residential property owners. See announcement 2024-10....more

Pillsbury - Policyholder Pulse blog

Federal Court Finally Issues an Opinion Analyzing LEG 3 (and It’s a Win for Policyholders)

The London Engineering Group’s LEG 3 exclusion—one of three standard form provisions issued by the London Engineering Group addressing coverage arising from construction or design defects—is an increasingly common defects...more

J.S. Held

Evaluating Equipment Replacement Costs for Gas Station Losses

J.S. Held on

Gone are the days of pulling into the corner gas station and running over a faded red hose to ring a bell, which in turn alerts the station owner, whose feet are sticking out from under a vehicle in the garage, that he has a...more

J.S. Held

Understanding the Factors Impacting Gas Station Business Income Losses

J.S. Held on

Whether the damage to a gas station's gas pumps results from car accidents, fires, lightning strikes, vandalism, or even floods, there are many distinct aspects to consider when reviewing and analyzing related business income...more

Cozen O'Connor

South Carolina Allows Depreciation of Labor Costs In ACV Calculation

Cozen O'Connor on

Insurers in South Carolina may now depreciate both labor costs and material costs when determining the “actual cash value” (ACV) owed to policyholders for property damage....more

Butler Weihmuller Katz Craig LLP

A Brief Refresher On Appraisal In North Carolina, South Carolina, And Georgia

Most first party property coverage policies contain an appraisal provision that allows either the insured or the insurer to make a written demand for appraisal when the parties agree that covered property was damaged by a...more

Cozen O'Connor

Failure of Insured to Provide Requested Documents Triggers Appraisal Under First Party Insurance Policy

Cozen O'Connor on

Those familiar with first party insurance policies have undoubtedly encountered a recurring issue with the interpretation of appraisal provisions – what does it mean to disagree on the amount of loss?  ...more

Cozen O'Connor

Free Ride on RCV? Not So Fast!

Cozen O'Connor on

Most property insurance policies condition the payment of replacement cost value (RCV) on the property first being replaced or repaired, and courts typically enforce that requirement. ...more

Carlton Fields

Tennessee Supreme Court Holds That Replacement Cost Less Depreciation Does Not Allow for Depreciation of Labor When Calculating...

Carlton Fields on

Insurance policies are designed to indemnify an insured by putting the policyholder in the same position he or she would have been in had no loss occurred. In the context of property insurance policies, damaged property is...more

Robinson+Cole Property Insurance Coverage...

Scope of Recoverable Damages: District of New Jersey Finds Insureds Not Entitled to Replacement Cost Value Until Damaged Property...

Property insurance policies typically require that the insured repair or replace damaged property before recovering on a replacement cost value (RCV) basis. ...more

Michigan Auto Law

Mistake #1 about Michigan No Fault replacement services

Michigan Auto Law on

Be warned — submitting false replacement services forms will forfeit a car crash victim from receiving Michigan auto No Fault benefits. I’ve represented several hundred Michigan car crash victims in my 22 years as an auto...more

Butler Weihmuller Katz Craig LLP

A Primer on Florida's "25 Percent Rule" for Roof Repair/Replacement

The 2014 Florida Existing Building Code (the “Code”) contains what is conventionally called the “25 percent rule” (the “Rule”). The Rule applies to roof repair of any commercial or residential building. In a nutshell, the...more

Dickinson Wright

The Art of Replacement in the Cost Approach

Dickinson Wright on

We live in an economy where provision of products and services is ever changing, including the hard assets by which such products and services are provided. For complex industrial and manufacturing property that remain...more

Butler Weihmuller Katz Craig LLP

The ABC's of ACV in Subrogation Claims

Oftentimes, during the course of a subrogation claim, third-party liability adjusters will refuse to pay the full amount of the “Repair Cost Value” (“RCV”) of the damages demanded, and contend that they only owe “Actual Cash...more

Robinson+Cole Class Actions Insider

Update on Labor Depreciation Class Actions

There have been two recent federal district court decisions in the widespread class action litigation involving the application of depreciation to the labor cost component of replacement cost value on property insurance...more

Williams Mullen

2016: A Busy Year for the Supreme Court of Virginia, Including 2 Significant Decisions for the Construction Industry

Williams Mullen on

If you are a design professional providing services in Virginia, or a general contractor on a public works project for the Commonwealth of Virginia, you need to know of two Virginia Supreme Court decisions in 2016. You ask...more

Robinson+Cole Class Actions Insider

Depreciation of Labor Costs Class Action: Nebraska Supreme Court Rules In Favor of Insurer

I’ve regularly followed on my blog key developments in the numerous class actions against the insurance industry involving the application of depreciation to the labor cost component of estimated replacement cost value in...more

Nossaman LLP

California Supreme Court Endorses the Insurance Commissioner’s Authority to Regulate Wayward Insurers

Nossaman LLP on

On Monday, the California Supreme Court revived a 2011 insurance regulation designed to protect homeowners from underinsurance because of the insurance company’s use of potentially misleading estimates for home replacement...more

Pullman & Comley, LLC

California’s High Court Gives Insurance Regulators New Tools To Broaden Authority

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Nearly two years ago, a California appellate court invalidated a rule promulgated by the state’s Insurance Commissioner, on the ground that the regulator lacks authority to prohibit “deceptive acts or practices” which are not...more

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