Velocity Specialty: the denial record

The Policy provides coverage on a replacement cost basis with a limit of liability in the amount of $6,328,000 for building, $72,[address redacted]ructures, $345,000 for contents and $1,200,000 for business income coverage, subject to a 3% deductible ($238,250).

Insurers must also tender the full remaining contractual amount owed based on Foundations' estimate of $4,242,292.00, less any prior payments and applicable deductibles, subject to the terms of the policy.

After withholding "non-recoverable depreciation" in the amount of $76,581.53 and the Hurricane deductible of $114,124.20, Sedgwick issued what it claimed to be an actual cash value ("ACV") payment for the building damage in the amount of $57,944.40.

Following the loss, the insured retained RS Builders to perform mitigation repairs, where the insured incurred at least $67,561.94 in temporary repairs.

The amount that should have been paid to the insured following application of the hurricane deductible is $31,746.24,