Liable party's insurance only offering ACV

[andrew1010]

What is the name of your state (only U.S. law)? Virginia

Hello,

I had some water damage to my apartment due to a leak in the unit above mine. The upstairs owner's insurance company, which we'll call Acme, has accepted liability. After I submitted a repair quote for the damage, Acme has informed me that they will only pay for the actual cash value (ACV) vs. the total replacement cost (RC) to compensate for the depreciation of my floor, so I would have to pay for part of the repairs out of my pocket. I argued that this wasn't acceptable since my floors were in great shape prior to the leak and since I wasn't liable, I shouldn't be financially impacted at all.

Acme responded that they only are able to give me a check for ACV, take it or leave it. I don't have my own insurance company to fight this battle for me. Right now, I'm unsure of what leverage I have, if any, to convince Acme to pay the full RC. Can anyone give me some advice here?

Much appreciated,
Andrew

 

[tranquility]

Since their liability is only the fair market value, they are not going to pay you for new floors. The only "leverage" you have is a lawsuit over the difference of what they are offering you as fair market value (AC) and what you believe your floors in "great shape" were worth. That is, you argue your case in negotiations to bring up the value of your floor and they determine the amount they want to give. You accept it and be done or you don't accept it and sue for the total amount.

They are not going to pay to replace your floors. If it were your own insurance company, and you got the proper coverage, you would get the amount. For example, my home insurance is replacement cost plus any building code changes since the house was built. But, I pay extra for that. If you had your own insurance, the other guys would pay you how much you were hurt and your own insurance company (If properly endorsed.) would pay the extra to bring it up to replacement.

 

[andrew1010]

Thanks for your response, tranquility. I had hoped this wasn't the case. Tough cookies, I guess.