I’m looking to clarify how diminution of value for an insured vehicle is applied under collision in Florida. Our initial view is it is not typically provided as a first party coverage.
Your policy language is very similar to the ISO language and makes no provisions for payment of diminution of value. There is a clause listing a stated amount on the declarations - if there is a stated amount on the dec that is factored into potential payment. However, payment is still the least of the ACV, amount to repair, or the stated amount. Payment of loss is as follows:
LIMIT OF INSURANCE
"Our" limit of insurance for loss will be the lesser of the:
1. Actual cash value of the stolen or damaged property;
2. Amount necessary to repair or replace the property; or
3. Stated amount shown in the Declarations.
If a repair or replacement results in better than like kind or quality, "we" will not pay for the amount of the betterment.
"Our" payment for loss will be reduced by any applicable deductible shown in the Declarations.
PAYMENT OF LOSS
"We" may pay for loss in money or repair or replace the damaged or stolen property. "We" may, at "our" expense, return any stolen property to:
1. "You"; or
2. The address shown in this policy.
If "we" return stolen property "we" will pay for any damage resulting from the theft. "We" may keep all or part of the property at an agreed or appraised value.
If "we" pay for loss in money, "our" payment will include the applicable sales tax for the damaged or stolen property.
Also, in Siegle v. Progressive Consumers Ins. Co., 819 So. 2d 732 (Fla. 2002) the court ruled that the insurer was not required to pay for diminution in market value and was responsible only for the cost of returning the damaged vehicle to the same physical, operating, and mechanical condition as existed immediately before the loss. We see no coverage for diminution of value.