Allstate Faulted for Reducing Reimbursement to Homeowner

PHOENIX - An insurer that promises to pay the 'actual cash value' for damage to an insured's home cannot automatically deduct a contractor's overhead and profit if the homeowners decide to make their own repairs, an Arizona appeals court held on Oct. 12. Tritschler, et ux. v. Allstate Insurance Co., et al., No. 2CA-CV 2005-0316 (Ariz. Ct. App., Div. 2).

The Court of Appeals, Division Two, reversed a lower court's award of summary judgment for Allstate Insurance Co. on breach of contract and bad faith claims, but remanded for a finding on whether the repairs made by the homeowner would …