What Is The Broad Evidence Rule?
Updated: Aug 18
How Does The Broad Evidence Rule Affect The Actual Cash Value Of My Claim?
If you've filed a property damage insurance claim, you may be curious about how your insurance company determines the monetary value of your loss. In Florida, the amount of your property damage insurance claim payout may be based on a myriad of factors. The Actual Cash Value of your property damage insurance claim may end up being less than you think if you don't understand how The Broad Evidence Rule works.
What is The Broad Evidence Rule?
The Broad Evidence Rule is loose framework insurance companies use to determine the value of your property damage/loss. Insurance companies are not bound to any one formula to determine the monetary loss. This means the outcome of your property damage insurance claim an be uncertain. A few key points to remember when understanding what The Broad Evidence Rule does:
It does not always take into account the actual cash value of your property damage/loss.
It does allow insurers to take into account a myriad of factors to include: market value, original cost, replacement cost, age and condition of the property, location, frequency of use, durability of the item, assessed value, number of users in the household or business, offers to sell, offers to purchase, and rarity.
Florida uses The Broad Evidence Rule, but it is not universal to all states.
Is The Broad Evidence Rule Fair For Homeowners?
The Broad Evidence Rule isn't necessarily fair or unfair to homeowners in Florida, but it does leave the determining factors of your property damage insurance claim to the discretion of your insurance company. When shopping for homeowners insurance in Florida, it may be wise to inquire about the methods of calculation used by each company to decide which company may work best in your unique situation.
For example: if one company uses fair market value in determining the actual cash value of your home and another only uses the original cost, it would be up to you to decide which company would come closest to the monetary value you need in the event your property damage insurance claim is deemed a total loss.
How Can An Attorney Help My Property Damage Insurance Claim?
If you're dealing with a property damage insurance claim in Florida and you believe that your insurance company isn't valuing your property damage claim fairly, an attorney can review your claim. Our property damage insurance attorneys will be able to determine the factors used to determine the actual cash value of you home used by the insurance company and understand whether The Broad Evidence Rule was applied fairly or possibly only for the benefit of your insurance company paying out a lesser amount that they could have. Regardless of your personal feelings on the payout, an experienced attorney should be able to explain the process to you and determine whether you need to pursue further litigation against your insurance company for failing to payout a fair amount.
Contact Tallahassee Property Damage Attorney For Free Claim Review
Florida Property Damage Attorneys has been serving Florida homeowners for over 25 years. You need an attorney who not only has experience in understanding insurance law in Florida, but also one who can litigate a case, if need be. Our team will review your property damage insurance claim at no-cost to you and give you an honest legal opinion on your options. Contact our offices to day to schedule your free consultation at 850-577-1699.