Property Damage Policies: Valuing Complex Claims, Avoiding Valuation Mistakes, Managing Policyholder Expectations
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will guide counsel through complex loss valuation issues under property damage policies when property - including real property and improvements - has been partially or completely destroyed. The program will discuss the methods for calculating replacement cost value (RCV) and actual cash value (ACV) losses, highlight and discuss special considerations and problems that arise when valuing certain types of losses, and review relevant case law. The panel will also offer best practices for avoiding common valuation errors and how insurance counsel can manage policyholder expectations.
Outline
- Actual cash value vs. replacement cost coverage defined and distinguished
- Actual cash value coverage
- Introduction
- Calculation of actual cash value
- Application to a total and partial loss
- Replacement cost coverage
- Introduction
- The requirement of actual repair or replacement
- Related replacement cost valuation problems: partial losses
- Contractual time limits on replacement of damaged property
- Quality issues
- Location restrictions
- Effect of code changes
- Co-insurance
- Endorsements
Benefits
The panel will review these and other critical issues:
- What constitutes a "loss"?
- What is the "broad evidence" method of calculating ACV?
- What is "replacement" coverage, and why are policyholders often surprised?
- Does the insured's intention about the future use of the damaged property matter?
- How does the analysis change if there is only a partial loss of property?
- What are common types of valuation mistakes, and how can they be avoided?
Faculty
Mark D. Herman
Partner
Covington & Burling
Mr. Herman advises policyholders on insurance coverage and represents clients in complex commercial litigation and... | Read More
Mr. Herman advises policyholders on insurance coverage and represents clients in complex commercial litigation and arbitration, with a focus on insurance coverage disputes. He has helped clients reach favorable resolutions of a wide variety of insurance claims, including property, business interruption, products liability and mass torts, directors and officers liability (D&O), errors and omissions and professional liability (E&O), cyber, aviation, trade credit, and political risk claims.
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Ethan W. Middlebrooks
Shareholder
Anderson Kill
Mr. Middlebrooks concentrates his practice in insurance recovery, exclusively on behalf of policyholders. He also works... | Read More
Mr. Middlebrooks concentrates his practice in insurance recovery, exclusively on behalf of policyholders. He also works in corporate and commercial litigation. Mr. Middlebrooks has assisted numerous policyholders with insurance recovery on a range of matters and insurance policies, including multiple matters involving first-party property policies and construction-related issues, as well as municipal-related concerns. He has also worked on claims involving representations and warranties insurance, as well as a variety of liability policies including public officials' liability, general liability, and directors' and officers' liability. Mr. Middlebrooks’ insurance recovery practice has involved claims that have undergone litigation, arbitration, mediation, formal appraisal proceedings, and that have successfully resolved without formalized proceedings. In addition to his insurance recovery work, his practice has involved construction-related disputes, and litigation involving financial institutes.
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Alexis N. Dyschkant
Attorney
Covington & Burling
Ms. Dyschkant represents policyholders in complex insurance coverage disputes and civil litigation in federal and state... | Read More
Ms. Dyschkant represents policyholders in complex insurance coverage disputes and civil litigation in federal and state courts involving a wide variety of underlying claims and losses, including environmental liabilities, mass tort claims, cyber claims, government investigations, shareholder claims, errors or omissions liabilities, breach of privacy claims, first party property damage/business interruption, and event cancellation losses. She is knowledgeable about domestic and foreign insurance policies including: commercial liability; malpractice liability; errors and omissions liability; directors and officers liability; cyber and privacy risk; owners', landlords', and tenants' liability; aviation policies; first party property policies; and event cancellation policies. Ms. Dyschkant is an experienced coverage litigator with oral advocacy experience in high stakes matters. She is a zealous and committed advocate for her clients and assesses the unique needs of each matter in order to develop a goal-oriented strategy.
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