Gilderman v. State Farm Insurance

HESTER, Judge.

The issue presented herein is whether an insurer, which has agreed to pay repair or replacement costs less depreciation in advance of actual repair or replacement of a covered loss, may automatically withhold both depreciation and a flat twenty percent representing contractor overhead and profit from its advance payment. We conclude that it may not and reverse the grant of summary judgment in favor of the insurer in this action. 1 We remand for further proceedings.

Alex and Janet Gilderman instituted this class action on behalf of themselves and other insureds suffering a covered…