A Wisconsin appellate court has set aside an Appraisal award that determined Actual Cash Value of a fire damaged building under the Broad Evidence Rule. The Appraisal panel determined ACV utilizing five factors including market value, averaged of adjusted sales price, income approach, building assessment value and a less than 100% weight factor for replacement cost less depreciation. The court relied on a common understanding of Actual Cash Value, including definitions from the Commissioner of Insurance Office, Black’s Law Dictionary and the carriers own website to conclude that Actual Cash Value in this case would be calculated primarily by subtracting depreciation from the cost to repair the damaged property.
This is presented for adjustment practice information only and should not be construed as legal advice. For a full copy of the unpublished opinion click here. We would encourage readers to secure legal counsel before relying on this opinion.