By Katelyn Ferry, Esq.
Katelyn Ferry, Esq. Courtesy, Cambo Ferry, PLLC
Florida’s First District Court of Appeal issued an important opinion regarding Actual Cash Value/Replacement Cost Value (ACV/RCV) in property insurance policies.
In Bailetti v. Universal, the appellate court confirmed the final judgment in favor of Universal. Universal paid based on its ACV estimate; the insured did not challenge the ACV payment or present a competing ACV estimate prior to suit. On the eve of trial, the insureds’ expert submitted an estimate that was prepared in 2023 – three years after Hurricane Sally – and did not have a total estimate amount. The estimate was not provided until the eve of trial.
At trial, Universal’s expert testified as to actual cash value but refined the amount of his estimate during trial. Both parties moved for directed verdict and the court denied both motions. The jury concluded that the insureds did not prove breach of contract.
On appeal, Universal argued, and the appellate court confirmed, that the insureds were only entitled to ACV until such time that they completed repairs and incurred expenses.
Most importantly, the court found that the estimates prepared by both experts on the eve of trial and during trial were insufficient to show that Universal breached the contract at the time the insureds filed suit. This shows that a breach must be established when a suit is filed and that the insureds cannot rely on estimates provided years later.
(Editor’s Note: This case represents yet another DCA establishing that insurers are correct in applying the provisions of the insurance contract in light of the claim facts as they occurred, before and up to the date the suit was filed. This case should serve as a reminder that plaintiffs and their counsel don’t get the privilege of rewriting the actual facts of the case. The Insurance Journal, in its coverage, characterized this case as a significant win for property insurers.)
Katelyn Mae Ferry is a Partner and Founding Member of the law firm of Cambo Ferry, PLLC. Ms. Ferry has practiced exclusively insurance defense litigation since 2014 and has focused her practice on the areas of first and third-party insurance coverage and defense. You can reach her at the firm’s Longwood office at 407-236-1252 or by email at [email protected]
LMA Newsletter of 10-20-25
