Henn v. American Family Mutual Insurance Co.
Rosemary Henn filed a putative class action in a federal court alleging that American Family Mutual Insurance Company wrongfully failed to compensate her and others similarly situated by depreciating labor costs in calculation of “actual cash value” for loss or damage to a building under its homeowner’s insurance policies. The federal court certified a question to the Nebraska Supreme Court asking whether an insurer, in determining the “actual cash value” of a covered loss, may depreciate the cost of labor when the policy does not state explicitly that labor costs will be depreciated and the terms “actual cash value” and “depreciation” are not defined in the policy. The Supreme Court answered in the affirmative, holding that the term “actual cash value” is unambiguous and that labor can be depreciated. View "Henn v. American Family Mutual Insurance Co." on Justia Law