Opinion ID: 213920
Heading Depth: 3
Heading Rank: 1

Heading: Actual Cash Value provision

Text: We consider at the threshold how Allstate agrees to pay for a covered loss under the terms of its homeowners policy. The relevant contract terms appear in a section titled How We Pay For A Loss, which specifies that Allstate will pay on an actual cash value (ACV) basis in the following circumstances: Actual Cash Value. If you do not repair or replace the damaged ... property, payment will be on an actual cash value basis. This means there may be a deduction for depreciation. Payment will not exceed the limit of liability shown on the Policy Declarations for the coverage that applies to the damaged... property, regardless of the number of items involved in the loss. You may make claim for additional payment as described in paragraph c [Building Structure Reimbursement] [7] ... if you repair or replace the damaged... covered property within 180 days of the actual cash value payment. (emphasis added). We have previously scrutinized this ACV provision from Allstate's homeowners policy. See Bayle, 615 F.3d 350 (5th Cir. 2010); Nunez, 604 F.3d 840 (5th Cir.2010); Bradley, 620 F.3d 509 (5th Cir.2010). We have concluded in our prior cases that under this provision, insured homeowners are not entitled to any payments for structural damage in excess of the ACV of their house unless they repair or replace their damaged property. Bayle, 615 F.3d at 362. [8] The provision also makes clear that where the insured has not repaired or replaced the damaged property, she may not recover an amount greater than the policy limit for the dwelling. If the insured subsequently repairs or replaces the covered property, she may claim the additional expenses incurred, subject to the 180-days limit. In this case, it is undisputed that the Plaintiffs have not repaired or replaced their damaged property. Allstate's liability under the homeowners policy is thus subject to the ACV provision, as the district court noted in its oral ruling at the close of trial. With this principle in mind, we turn to the parties' challenges to the district court's award of additional insurance proceeds.