North Carolina Supreme Court Holds the Term ‘ACV’ Unambiguously Includes Depreciation of Labor Costs

Key Takeaways:

  • The term ACV is not susceptible to more than one reasonable interpretation and unambiguously includes depreciation of both material and labor costs
  • Split decisions in other jurisdictions on whether ACV includes depreciation of both labor and materials does not result in the term being ambiguous under North Carolina law

The Supreme Court of North Carolina held that the term Actual Cash Value (ACV) in a homeowners policy is unambiguous and is calculated by depreciating both labor and material costs. The decision in Thomas

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