Cal Fair Plan Suggests they don’t have to adhere to 2695.9 due to ACV policy Mike Vaughan asked 8 months ago
Cal Fair Plan Suggests they don’t have to adhere to 2695.9 due to ACV policy

Cal Fair Plan Suggests that 2695.9. only applies to RCV policies. They suggest that the verbiage outlined in section 2695.9. (a) only applies to RCV policies and not ACV policies.

“When a residential or commercial property insurance policy provides for the adjustment and settlement of first party losses based on replacement cost, the following standards apply:”

We have insisted that the definition of an ACV policy is in fact; replacement cost less depreciation. To that end my covered claim is based on replacement cost. I have discussed this matter with numerous individuals including my broker, two additional brokers, and 3 different insurance attorneys here in the state of California. None of these individuals had ever heard of a carrier ignoring any portion of the rules and regulations outlined by The California Department of Insurance due to having an ACV policy.

1 Answers
United Policyholders Staff answered 6 months ago

Dear Mike,

The CA Fair Plan absolutely does have to comply with all the regulations and laws related to fair insurance claim practices. See our CA FAIR Plan guidance:

Insurance Consumer Rights in California

CA FAIR Plan webinar

CA FAIR Plan as insurer of last resort

If your policy is ACV only, they should be timely paying a fair depreciated value on the replacement cost of your loss and not apply excessive depreciation. If you and they disagree on the Replacement Cost Value or amount of depreciation, you can seek help from the DOI or a construction consultant or public adjuster. If there’s another aspect of your claim that we’re not understanding, please send us a follow up email to


United Policyholders