Migliaccio & Rathod LLP is investigating whether certain Vermont property insurance companies have improperly reduced actual cash value claim payments by depreciating labor and other nonmaterial repair costs.
When a homeowner or business owner files a covered property damage claim, an insurer may calculate actual cash value by estimating replacement costs and subtracting depreciation. Some insurers may apply depreciation not only to damaged materials but also to labor, equipment, contractor overhead, and other nonmaterial expenses. Whether these deductions are permitted depends on the policy language and applicable Vermont law.
Migliaccio & Rathod is investigating whether insurers have applied depreciation to nonmaterial repair costs without sufficient contractual authorization, potentially reducing payments owed to Vermont policyholders following covered property losses.
Policyholders May Have Experienced:
- Having labor costs depreciated in an actual cash value settlement;
- Receiving claim estimates showing depreciation of contractor overhead or equipment expenses;
- Having repair payments reduced by depreciation of nonmaterial costs;
- Receiving less than the amount required under their policy’s actual cash value provisions;
- Being unable to determine which repair expenses were subject to depreciation; or
- Paying additional repair costs because of potentially improper depreciation deductions.
Potential Claims May Include:
- Improper depreciation of labor or other nonmaterial repair costs;
- Incorrect calculation of actual cash value benefits;
- Breach of insurance contract;
- Improper underpayment of covered property damage claims; or
- Violations of applicable Vermont insurance laws.
Signs You May Be Affected:
- You had a property insurance policy in Vermont;
- You filed a covered claim involving damage to a home, business, or other insured property;
- Your insurer calculated payment using actual cash value;
- Your claim estimate included depreciation of labor, equipment, overhead, or other nonmaterial costs;
- Your policy did not clearly authorize the disputed depreciation; or
- You have the policy and an itemized claim estimate showing the deductions.
If you believe you experienced this issue, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call.