Christopherson v. American Strategic Insurance Co.

999 F.3d 503 (7th Cir. 2021)

Words & Phrases

Actual Cash Value

Trial Judge

J.P. Stadtmueller

Appellate Judge

Hamilton

Holding

Policyholder was not entitled to recovery of replacement cost expenses before they were actually incurred, so was limited to actual cash value.

Fact Summary

Plaintiff’s argument misses the fundamental point of the policies’ provisions involving reimbursement: the insured must first incur the expenses and then provide the insurer with documentation before the insurer is obliged to pay. By his own admission, plaintiff never carried out the roof recon­struction for which Hintze estimated the costs. Before anyone did anything about Hintze’s estimate, and before the insurer even knew about it, the second tree fell and wholly destroyed the home. Accordingly, the insurer was obliged to pay only the actual cash value of the damage by the first tree. It fulfilled that obligation on July 6, 2018, when it paid plaintiff $11,081 to cover damages to his roof, tree removal, and other ex­penses.

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