Mark Adams and Kathy Adams v. Cameron…

Summary

The court held that an insurer may not depreciate labor costs when calculating the actual cash value of a covered loss under an indemnity policy that does not define that term. Because the term was reasonably susceptible to competing interpretations, the policy was construed liberally in favor of the insured and strictly against the insurer. Justice Hart, joined by Justice Baker, concurred in the result but would have resolved the certified question narrowly without defining actual cash value or relying on an out-of-state dissent.