Last week, we looked at Magistrate Judge York’s October 2021 opinion in Smith v. State Farm, in which State Farm was ordered to proceed with an appraisal of the loss as properly invoked by Ms. Smith. As a refresher, Ms. Smith’s home was damaged by a March 3, 2020 storm, and State Farm agreed
actual cash value
OSHA Compliance is the Law . . . But it’s Not an Ordinance or Law for Coverage Purposes
By Brandon McWherter on
The Occupational Safety and Health Act was signed into law in 1970 by President Nixon, and the Occupational Safety and Health Administration (OSHA) was simultaneously created to implement, administer, and enforce its requirements. OSHA’s mission is to “assure safe and healthy working conditions for working men and women by setting and enforcing standards and by…
TN Supreme Court Rules Labor Cannot be Depreciated
By Brandon McWherter on
For the past few years, I’ve been involved in several labor depreciation cases around the Southeast, including one right here in Tennessee against Auto-Owners. The threshold legal question in that case, Lammert et al. v. Auto-Owners Mutual Ins. Co., was whether an insurance company can depreciate the cost of labor when determining its actual…
MS Insurance Commissioner Issues Bulletin Regarding Labor Depreciation
By Brandon McWherter on
This past Friday (Aug. 4, 2017), Mississippi’s Insurance Commissioner, Mike Chaney, issued a bulletin that alerts insurers that they should not be depreciating labor in Mississippi unless policy language clearly allows it, and even then, estimates must clearly delineate that labor was depreciated. I’ve quoted the bulletin below:
Continue Reading MS Insurance Commissioner Issues Bulletin Regarding Labor Depreciation
When is Overhead and Profit Due in Tennessee?
By Brandon McWherter on
Several years ago I discussed a Sixth Circuit Court of Appeals case where the court determined that general contractor’s Overhead and Profit were recoverable if the insured would “reasonably be expected to hire a contractor to repair its property” See Parkway Assoc., LLC v. Harleysville Mut. Ins. Co., 129 Fed. Appx. 955 (6th Cir.…
TN Farm Bureau Changes its Coverage on Roof Claims
By Brandon McWherter on
Posted in Miscellaneous
I recently learned that Tennessee Farmers Mutual Insurance Company (Farm Bureau) has changed the way it will pay roof claims. Specifically, a recent endorsement changes roof coverage to actual cash value for roofing materials instead of replacement cost. This means that roof materials will be depreciated in the event of a roof claim. For example…
Should Sales Tax Be Included When Calculating Insured Losses?
By Brandon McWherter on
Posted in Valuation Issues
Chip Merlin, in his Property Insurance Coverage Law Blog, commented a few days ago about a recent case out of Washington, Holden v. Farmers Insurance of Washington, 2010 WL 3504821 (Wash. Sept. 10, 2010). The issue there was whether sales tax should be included in insurers’ calculations of actual cash value and replacement…
Policy Language Often Provides Valuation Measure
By Parks Chastain on
Posted in Valuation Issues
While I acknowledge Clift v. Fulton Fire Insurance Company, 315 S.W.2d 9 (Tenn. Ct. App. 1958), cert. denied, provides a rule for allowing valuation of property under a somewhat “elastic” standard of “value to the owner,” this ambiguous standard should not apply where the valuation provisions of property coverage are specifically set forth…
Tennessee’s Elusive Standard for Valuing Household Personal Goods
By Brandon McWherter on
Posted in Valuation Issues
A common question around my office is, “How do I know what values to claim for my personal goods?” Fortunately, a 1958 Tennessee Court of Appeals opinion provides the answer, but it is not one that is widely disseminated by adjusters to policyholders. In Tennessee, household goods, furniture, clothing and other articles acquired for personal…