Holden v. Farmers Insurance

¶1 — This case presents a single question of law—does “actual cash value,” defined as fair market value, include sales tax on all amounts claimed under a homeowners insurance policy? The trial court determined that actual cash value includes sales tax and granted summary judgment in favor of Laura Holden. Because an actual cash value clause acts only to indemnify the insured, we reverse and remand for entry of summary judgment for Farmers Insurance Company of Washington.

Appelwick, C.J.

FACTS

¶2 Laura Holden had a homeowners insurance policy through Farmers Insurance Company of Washington under…