Q: Does insurance have to pay actual value or total replacement costs in auto accidents that result in property damage?
Logging truck drove into my rental. They want to pay 83k for appraisal value of home and lossed rent. Multiple contractors estimate 220k plus to repair. Occurred in Arkansas. Driver was charged with DUI.
A: An Arkansas attorney could advise best, but your question remains open for a week. The short answer is that it could depend on the terms of the policy. Some policies are ACV (actual cash value) and some are Replacement Cost. A local attorney should be able to advise definitively after seeing the policy. Good luck
A: In general, only insurance policies you buy to protect your own property can be purchased to allow for replacement value. An adverse party’s insurance company only pays fair market value (subject to and exceptions for state laws).
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