|Position Statement - www.iCan2000.com|
|Diminished Value Exists - - PERIOD
The ONLY issue in contention is where the Loss-of-Value [or] Post-Repair Loss-of-Value is compensable under a contract of insurance.
It is widely accepted and acknowledged that a tort victim [3rd party claimant] is due compensation for the loss of value to their damaged property. Said damage is the liability of the negligent party and typically paid by that party’s auto insurance carrier. The only issue here is defining and documenting the extent of the Diminished Value damage.
A highly contested issue is whether the policyholder [insured] has the right to recover Diminished Value damages from their own carrier under their policy’s Collision or Comprehensive Coverage. State courts are split on this issue.
Please consider the following - - according to Couch on Insurance, an Actual Cash Value policy insures Not the property itself - - but the VALUE of the property.
When an insurer chooses to “Repair” the damaged insured property (as is their option within the contract of insurance) it is our opinion that such an election does Not relieve the carrier of their contractual duty to restore the Pre-Loss VALUE. To whatever extent such repairs fail to restore the property’s Pre-Loss VALUE, said short-fall should be tendered to the policyholder in cash.
Premiums for Collision and Comprehensive Coverages are calculated based upon Actual Cash Value of the covered property. When a Collision/Comprehensive claim is presented, Failure of the Insurer to pay anything less that what is necessary to restore the Actual Cash Value of the covered property constitutes insurer fraud.
If a contract of insurance specifically excludes coverage for Diminished
Value (as many now do) such exclusion should be brought to the attention
of the policyholder Prior to the event that precipitated the claim for
damages in order to be enforceable.
Diminished Value - - Reduces Actual Cash Value - - Compensable Damage