Archives: Valuation

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“Ordinance or Law” Coverage for Costs of Repair

I was saddened to learn that Judge Ruggero Aldisert, formerly of the Third Circuit, recently passed away.  I never had the privilege of appearing before Judge Aldisert, and I never met the man, but I feel indebted to him for writing two excellent books that were published through NITA:  “Logic for Lawyers” and “Winning on … Continue Reading

Calculating Business Interruption Damages

When I was in college, there was an English professor named Frank Kinahan, who taught a class called “The Little Red Schoolhouse.”  A lot of my fellow students (not me, of course!) apparently thought that if they could just write their papers in enough of an arcane and convoluted manner, people (including their professors) would … Continue Reading

The Appraisal Provision in First-Party Property Policies

I’m not a big fan of arbitration.  I think it costs too much (which kind of goes against its main marketing point), and I don’t particularly like the fact that there’s no right of appeal absent the arbitrator committing fraud. Having said that, and with so many Sandy-related claims still pending in New Jersey, I … Continue Reading

How to prove a business interruption loss

I once heard a veteran of the complex commercial litigation wars describe the process as follows. “Each side hires an expert,” he said, “and the preponderance of perjury prevails.” A cynical – if funny and unfortunately too-often-accurate – view.  Recognizing that expert witnesses are, in essence, paid advocates, the Supreme Court formulated the Daubert and … Continue Reading

The Coinsurance Penalty and Replacement Cost Coverage

I confess:  I sometimes wonder whether some claims personnel have ever heard of the “red face” test.  In other words, you should only take a negotiating position if it doesn’t actually cause you to blush.  Otherwise, how could seemingly rational people contend that buying “expanded” coverage means that the policyholder has no coverage?  (And how … Continue Reading

Actual cash value and replacement cost

Large first-party property damage cases often come down to a battle of accountants.  In other words, unlike Olympic beach volleyball, they’re usually not particularly thrilling to watch.  (Not that I have anything against accountants.)  But the results of the battle can have a major impact on the policyholder’s balance sheet.  How is the policyholder’s claim … Continue Reading