Homeowner’s claim leads to question of labor depreciation

Insurance Law

By Kimberly Glasford

Kimberly Glasford is a law clerk for 1st District Appellate Justice Terrence J. Lavin. She may be reached at kimberly.glasford@gmail.com.

Posted September 30, 2021 11:13 AM

The home of Jarret Sproull suffered wind damage. Under Sproull’s policy coverage, State Farm Fire & Casualty Co. was required to pay him the “actual cash value,” or ACV, of the covered loss, up front, before any repairs were performed.While Sproull’s policy did not define ACV, an Illinois Department of Insurance (DOI) regulation defined it as the “replacement cost of property at time of loss less depreciation, if any.” 50 Ill. Adm. Code 919.80(d)(8)(A) (2002).Sproull and State Farm disputed whether labor costs, as …

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