Property Insurance: Loss Valuation and Avoiding Valuation Mistakes
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar 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 the most common types of valuation mistakes, and how can they be avoided?
Faculty
Jonathon C. Held
President and CEO
J.S. Held
Mr. Held has consulted on many of the largest and most complex catastrophic insurance claims in history, including the... | Read More
Mr. Held has consulted on many of the largest and most complex catastrophic insurance claims in history, including the 1993 and 2001 terrorist attacks on the World Trade Center in N.Y., the AOL Time Warner Center fire in N.Y., The Amtrak Superstorm Sandy litigation, and many of the world’s most visible claims. He is widely considered the expert of choice in large complex “bet the farm” cases. With an unparalleled reputation in the dispute resolution arena, Mr. Held has been a panelist in hundreds of claims and was the party appointed appraiser in the four largest claims ever to be resolved in the appraisal process. Throughout his career, he has testified in numerous courts across the U.S. and has considerable experience as an arbitrator and umpire.
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Heidi Hudson Raschke
Shareholder
Carlton Fields
Ms. Raschke has spent her legal career representing commercial insurance clients in complex coverage disputes. She... | Read More
Ms. Raschke has spent her legal career representing commercial insurance clients in complex coverage disputes. She partners with her clients, developing close relationships with them, and enabling the collaboration that best serves their unique needs. Depending on the case or client, the approach could range from pre-litigation counseling, to alternative dispute resolution, through discovery, summary judgment briefing, and trial. Ms. Raschke has significant experience representing commercial insurers in sophisticated first-party property coverage matters and other complex coverage disputes involving directors and officers liability insurance, errors and omissions liability insurance, professional liability insurance, comprehensive general liability insurance, financial institution bonds, and bad faith litigation. She regularly speaks and authors articles regarding the commercial insurance industry and she is a past chair of the ABA Tort Trial and Insurance Practice Section's Property Insurance Law Committee.
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