Opinion ID: 377033
Heading Depth: 1
Heading Rank: 3

Heading: appreciation of amount of insurance.

Text: 42 Continental argues lastly that the district court erred in allowing the value of the policy to appreciate one percent per quarter to the date of verdict, rather than to the date of loss as provided by the policy. We agree that the court's action was contrary to the clear terms of the appreciation clause. 43 The amount recoverable under the policy is limited to the extent of actual cash value of the property at the time of loss. (emphasis added). An endorsement provided that the amount of insurance applying to the building would be increased automatically at the rate of one percent per quarter. Thus, under those terms, the amount recoverable was the value of the building, but in no case greater than the amount of insurance on the building, at the time of the loss. 44 Another endorsement provided that the amount recoverable is amended from actual cash value to replacement cost. Cora Pub and the intervenors contend that the shift from cash value to replacement cost resulted in a new time frame for appreciation of value. They reason that since the policy was amended to use replacement cost as the standard of measure for damages, appreciation must be allowed to the date of verdict when funds are released for reconstruction. The clear language of the policy, however, ineluctably sets the date of loss as the point in time at which damages are determined. By extending the commercial appreciation of the policy to the date of the verdict, the district court increased the amount recoverable beyond what could properly be allowed under the policy terms. 45 REVERSED and REMANDED.