Discussion on the Difference Between Replacement Cost Value and Fair Market Value

This post discusses an interesting, but fairly complex decision dealing with the difference between replacement cost value and fair market value (actual cost value). The decision also discusses the set-off when suing a defendant after being paid the replacement cost value limit under the policy. In Five Solas, Inc. v. Ram Realty Services, LLC, 46 Fla.L.Weekly D1255a (Fla. 4th DCA 2021), a brick wall collapsed falling on a neighboring building damaging the building and rendering it untenantable. The owner of the building had a replacement cost value property insurance policy with a liability limit and deductible. The insurer paid the liability limit...