{"id":766879,"date":"2015-05-21T06:44:50","date_gmt":"2015-05-21T12:44:50","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=766879"},"modified":"2015-05-20T11:46:31","modified_gmt":"2015-05-20T17:46:31","slug":"calculating-actual-cash-value-part-7-kentucky","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/","title":{"rendered":"Calculating Actual Cash Value, Part 7: Kentucky"},"content":{"rendered":"

Shane Smith | Property Insurance Coverage Law Blog | May 12, 2015<\/p>\n

You may have been following some of my prior blogs on Calculating Actual Cash Value. So far, I have covered: Florida, California, Louisiana, Texas, New Jersey and New York, and Michigan.<\/p>\n

This week, I will address Kentucky.<\/p>\n

To recap, actual cash value (ACV) is typically calculated in one of three ways:<\/p>\n

    \n
  1. The cost to repair or replace the damaged property, minus depreciation;<\/li>\n
  2. The damaged property’s “Fair Market Value”; or<\/li>\n
  3. The “Broad Evidence Rule” \u2013 considering all relevant evidence of the value of the damaged property such as age of the property, the profit likely to accrue on the property, and the property’s tax value.<\/li>\n<\/ol>\n

    In determining the actual cash value of buildings for insurance purposes, Kentucky courts use the Broad Evidence Rule.1<\/p>\n

    In Snellen v. State Farm Fire & Casualty Company, the policyholder\u2019s home was damaged by fire. Her policy provided that the insurer would pay the cash value of the damage, up to the policy limit, until actual repair or replacement was completed, at which time the insurer would pay the cost of repair or replacement, without deduction for depreciation. The court held that the policy was not ambiguous and that the insurer would only pay the \u201ccash value of the damage, up to the policy limit, until actual repair or replacement is completed.\u201d2 In other words, actual repair of the premises is a condition precedent to receive those amounts deducted or depreciated from replacement costs. Here, the policyholder had not repaired or replaced or even evidenced an intention to do so.<\/p>\n

    Overhead and profit cannot be depreciated, however the Snellen court held that overhead and profit may be wholly deducted separate from depreciation in order to calculate actual cash value.3 To calculate actual cash value, the insurer started with the replacement value and subsequently subtracted clean-up costs, contractor\u2019s profit, contractor\u2019s overhead, permits, and depreciation.4<\/p>\n

    Please feel free to leave a comment below with the state you would like me to address in the next blog in this series.<\/p>\n

    1 Snellen v. State Farm Fire & Cas. Co., 675 F. Supp. 1064, 1068 (W.D. Ky. 1987).<\/p>\n

    2 Id. at 1066.<\/p>\n

    3 Id. at 1068.<\/p>\n

    4 Id.<\/p>\n

    via Calculating Actual Cash Value, Part 7: Kentucky : Property Insurance Coverage Law Blog<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Shane Smith | Property Insurance Coverage Law Blog | May 12, 2015 You may have been following some of my prior blogs on Calculating Actual Cash Value. So far, I have covered: Florida, California, Louisiana, Texas, New Jersey and New York, and Michigan. This week, I will address Kentucky. To recap, actual cash value (ACV)… Continue reading Calculating Actual Cash Value, Part 7: Kentucky<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[3],"tags":[6601,11,7776],"class_list":["post-766879","post","type-post","status-publish","format-standard","hentry","category-insurance-claims","tag-actual-cash-value","tag-insurance-claim","tag-kentucky","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nCalculating Actual Cash Value, Part 7: Kentucky - Advise & Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Calculating Actual Cash Value, Part 7: Kentucky - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Shane Smith | Property Insurance Coverage Law Blog | May 12, 2015 You may have been following some of my prior blogs on Calculating Actual Cash Value. So far, I have covered: Florida, California, Louisiana, Texas, New Jersey and New York, and Michigan. This week, I will address Kentucky. To recap, actual cash value (ACV)… Continue reading Calculating Actual Cash Value, Part 7: Kentucky\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise & Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-05-21T12:44:50+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Calculating Actual Cash Value, Part 7: Kentucky\",\"datePublished\":\"2015-05-21T12:44:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/\"},\"wordCount\":378,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Actual Cash Value\",\"insurance claim\",\"Kentucky\"],\"articleSection\":[\"Insurance Claims\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/\",\"name\":\"Calculating Actual Cash Value, Part 7: Kentucky - Advise & Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2015-05-21T12:44:50+00:00\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise & Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Calculating Actual Cash Value, Part 7: Kentucky - Advise & Consult, Inc.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/","og_locale":"en_US","og_type":"article","og_title":"Calculating Actual Cash Value, Part 7: Kentucky - Advise & Consult, Inc.","og_description":"Shane Smith | Property Insurance Coverage Law Blog | May 12, 2015 You may have been following some of my prior blogs on Calculating Actual Cash Value. So far, I have covered: Florida, California, Louisiana, Texas, New Jersey and New York, and Michigan. This week, I will address Kentucky. To recap, actual cash value (ACV)… Continue reading Calculating Actual Cash Value, Part 7: Kentucky","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/","og_site_name":"Advise & Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2015-05-21T12:44:50+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Calculating Actual Cash Value, Part 7: Kentucky","datePublished":"2015-05-21T12:44:50+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/"},"wordCount":378,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Actual Cash Value","insurance claim","Kentucky"],"articleSection":["Insurance Claims"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/","name":"Calculating Actual Cash Value, Part 7: Kentucky - Advise & Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2015-05-21T12:44:50+00:00","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/calculating-actual-cash-value-part-7-kentucky\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise & Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3dv1","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/766879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=766879"}],"version-history":[{"count":0,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/766879\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=766879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=766879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=766879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}