I am a licensed public adjuster in the state of Michigan seeking clarification regarding the proper method for determining Actual Cash Value (ACV) for personal property losses under an Allstate House & Home homeowners policy (policy attached).
In a current contents claim, the adjuster for Allstate has proposed calculating ACV by:
1. Identifying a retail "sale price" for a new item (e.g., temporary promotional or clearance pricing at a retailer), and then
2. Applying depreciation to that reduced sale price to determine the final ACV amount.
This methodology is inconsistent with standard industry interpretation of ACV as Replacement Cost Value (RCV) less depreciation. I have found no language in the Allstate policy that supports use of retail discounts as the ACV starting point.
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