A brief and to-the-point appellate choice is worth it studying concerning precise money worth in Florida.¹ The “as decided by us” trailing language within the coverage’s definition was the insurance coverage firm’s undoing: 

Tower Hill’s accountability below the coverage was to pay the ‘precise money worth’ of the loss. Ordinarily, ‘precise money worth’ is outlined because the ‘alternative value minus depreciation.’ Trinidad v. Fla. Peninsula Ins. Co., 121 So. 3d 433, 443 (Fla. 2013). On the shut of SFR’s case, Tower Hill moved for directed verdict, mentioning that the associated fee to restore offered by SFR was inadequate proof of ‘precise money worth’ as a result of it didn’t account for depreciation.

Beneath totally different circumstances, Tower Hill’s level may be well-taken. On this case, nevertheless, Tower Hill’s coverage defines ‘precise money worth’ as:

[t]he value to restore or exchange lined property, on the time of loss or harm, whether or not that property has sustained partial or whole loss harm, with materials of like variety and high quality, topic to a deduction for deterioration, depreciation and obsolescence as decided by ‘us.’…

The language of the actual coverage at situation on this case positioned the burden to ascertain the depreciation on Tower Hill. Beneath this coverage, SFR didn’t have the preliminary burden to show the quantity of depreciation.

A concurring opinion went even additional:

Whereas I agree with the outcome reached, I write to state that there’s a separate cause the trial court docket shouldn’t have granted a directed verdict. When an insured is entitled to ‘precise money worth’ of a loss below the phrases of an insurance coverage coverage, Florida courts have held that the ‘broad proof rule’ applies. See Worcester Mut. Hearth Ins. Co. v. Eisenberg, 147 So. second 575, 576 (Fla. 3d DCA 1962) (‘Florida will adhere to the so-called ‘Broad Proof Rule.’ Beneath this rule, any proof logically tending to ascertain an accurate estimate of the worth of the broken or destroyed property could also be thought-about by the trier of info to find out ‘precise money worth’ on the time of loss.’).

SFR admitted into proof an estimate ready by Mills Mehr & Associates, Inc. for Tower Hill. That estimate offered the idea for Tower Hill’s dedication of ‘precise money worth,’ and it included a 21% deduction for depreciation. Beneath the broad proof rule, I see no cause why that share couldn’t be used along with SFR’s estimate. Tower Hill argues that the calculation of a 21% deduction for depreciation can’t be used as a result of SFR’s estimate was for alternative of a better variety of tiles. Nevertheless, there isn’t a indication that the tiles included within the Mills Mehr estimate have been of a unique age or had further put on and tear than some other tile on the roof. In any occasion, Tower Hill’s argument would bear upon the load afforded such proof, not its admissibility.

Tower Hill pursues exactitude the place Florida legislation doesn’t require it. See McCall v. Sherbill, 68 So. second 362, 364 (Fla. 1953) (‘[D]amages aren’t rendered unsure as a result of they can’t be calculated with absolute exactness. It’s ample that there be an affordable foundation of computation though the outcome could also be solely approximate.’); W. Boca Med. Ctr., Inc. v. Marzigliano, 965 So. second 240, 244 (Fla. 3d DCA 2007) (‘The ‘cheap certainty’ rule for the calculation of damages doesn’t require mathematical precision[.]’).

This concurring opinion is essential. Not often are damages precise when figuring out what’s owed following loss to actual property. Contractors cost various quantities for a similar scope of labor. The standard and assurances of workmanship by the contractors differ as effectively. The methodology of restore could even be at situation. The theoretical damages of loss are normally a variety of “cheap” for approval at adjustment. Nevertheless, juries and judges can solely present one quantity on the time of verdict. 

For these wanting to review Florida legislation concerning precise money worth, I counsel you learn, Do You Have a Florida Property Insurance coverage Dispute Over Valuation? Perceive the Variations Between Alternative Value Worth, Precise Money Worth and How the Broad Proof Rule Works.

The above picture depicts Merlin Regulation lawyer Dennis Bailey subsequent to me at his Indian-themed marriage ceremony final evening. Dennis grew up in a household of trial attorneys. His father was a trial lawyer. His brother Tim remains to be a choose, as Dennis Bailey was earlier than becoming a member of our agency as our Basic Counsel and Trial Crew member. 

Thought For The Day

Quick is ok, however accuracy is all the pieces.

—Wyatt Earp

¹ SFR Providers v. Tower Hill Prime Ins. Co., No. 6D23-118 (Fla. 6^th DCA Could 26, 2023).