The South Carolina Supreme Court has recently addressed a question that often arises in the handling of first-party property claims, is it proper for the insurer to include labor costs in a depreciation calculation when the labor cost is “embedded” in the item of property? The case is Butler v. Travelers Home & Marine Ins. Co., 2021 S.C. Lexis 51.
Miriam Butler and Joseph Stewart were both homeowners whose homes were damaged in separate fires. Both Butler and Stewart had home insurance policies from subsidiaries of The Travelers Companies (Travelers), and both chose to receive the ACV of the damages to their respective homes rather than repairing or replacing the damaged aspects of their homes.
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