London v. Insurance Placement Facility

HUDOCK, Judge:

In this appeal, we are asked to decide whether the Insurance Placement Facility (Facility) should be permitted to depreciate the cost of repairs to a building when a policyholder under the Pennsylvania Fair Plan Act (Fair Plan)1 sustains a loss by fire. Under the specific terms of these Fair Plan policies, we hold that the Facility may depreciate the cost of repairs. Therefore, we affirm in part, reverse in part and remand with instructions.

The pertinent facts and procedural history of this case can be summarized as follows: The Facility provided basic property insurance to each…