Strafford Publications Webinar: COVID-19: The Insurance Implications For Banks and Their Customers

“Depreciation of Labor in Property Insurance Claims: Guidance From Recent Cases” addresses the application of depreciation to the labor cost component of estimated replacement cost value in determining actual cash value (ACV) under homeowners' and commercial property insurance policies. The panel provides practical guidance regarding labor costs and other non-physical cost items, such as contractor overhead and profit and whether these items should be depreciated in reaching an ACV adjustment of a property insurance claim. The panel also addresses issues from both policyholder and insurer perspectives, discuss ongoing litigation and recent decisions showing that courts continue to reach conflicting results, and explain effective arguments in advocating for or against these claims.