The wildfires that engulfed parts of Gatlinburg and Sevier County, Tenn., in late November have left behind an estimated 1,700 damaged or destroyed structures.

Because Tennessee is a valued policy state, the adjusting for some of these buildings may be different than in a non-valued policy state.

Property policies generally use one of two methods for determining the value of a loss: actual cash value or replacement cost.

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Actual cash value

Actual cash value is usually the standard for determining the amount of insurance needed, the amount of loss to be paid, and the amount upon which any coinsurance or similar requirement will be based.

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Christine G. Barlow, CPCU

Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.