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Insurer's Liability Under Replacement Cost Policy

The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.

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Westmoreland v. Fire Ins. Exch., No. A160387, 2021 Cal. App. LEXIS 1092 (Ct. App. Dec. 28, 2021)

Under former Ins. Code 2051.5, an insurer's liability under a replacement cost policy was the lesser of (a) the amount it would cost to replace the damaged structure at the insured location (without regard to depreciation), or (b) the policy's limits.  If the insurer requires the insured to repair the structure before claiming replacement cost, the insurer must first pay… Read More