Strategies, Challenges, and Answers

Replacement Value Not ACV Is The Proper Measure Of Damages In A Homeowner’s Theft Claim Where Policy Provides For Same

Victor and Arlene Havas took issue with the way their homeowner’s insurance company, Atlantic Insurance Company valued the property that they lost because of a theft at their home.  Mr. & Mrs. Havas submitted their claim to the insurance company seeking recovery of the value of the lost property.  The Havas’s insurance policy provided that recovery would be limited to an amount not exceeding either the cost of repair or replacement of the property with material of like kind and quality.

Havas v. Atlantic Insurance, Nevada Insurance Law, Mills & Associates Nevada Insurance and Coverage Lawyers 702-240-6060Apparently, recovery of the replacement cost was insufficient for the Mr. & Mrs. Havas.  When the insurance company offered them the replacement value of the stolen property (based on documents they produced demonstrating the cost they paid to replace the property) they filed suit.

In the case of Havas v. Atlantic Ins. Co., 95 Nev. 415, 596 P.2d, 246 (1979) they challenged the District Court’s decision awarding them only their replacement costs.  To the Havas’ chagrin, the Nevada Supreme Court agreed that replacement cost was the proper measure of damages under this policy.  As an interesting side note, this claim wasn’t the only beef that Mr. & Mrs. Havas had with Atlantic Insurance Company.  See Havas v. Atlantic Ins. Co., 96 Nev. 586, 614 P.2d 1 (1980) mentioned HERE.  The outcome in that case was even less favorable for Mr. & Mrs. Havas than was this earlier one.

If you have questions regarding the proper measure of damage for an insured property loss, please feel free to contact Mills & Associates.

About Michael Mills

Mr. Mills practices in the area of civil litigation and appeals, with particular experience in matters involving trucking liability, insurance defense, insurance coverage, premises liability, products liability and defense of personal injury. Mr. Mills is a member of the Trucking Insurance Defense Association, the Defense Research Institute Trucking Committee and the Nevada Motor Transport Association. Mr. Mills is licensed to practice before the Nevada Supreme Court and the Utah Supreme Court. He is also licensed to appear before the United States Supreme Court, the U.S. District Courts for the Districts of Nevada and Utah, as well as the U.S. Court of Appeals for the Ninth Circuit. Mr. Mills has created 3 Blogs for the benefit of the insurance industry. He serves as editor and publisher of the Nevada Insurance Law Blog, the Nevada Coverage and Bad Faith Blog and the Nevada Trucking Law Blog.

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