SHARON SPRINGS - A Sharon Springs homeowner is raising concerns about an insurance evaluation method he says significantly reduced the payout for his home, which was a total loss in a fire on January 28, 2025.
George Ryerson, a 40-year veteran of the insurance industry, states his insurer, Amica, employed a "Broad Evidence Rule" to determine the Actual Cash Value (ACV) of his property. This calculation, according to Ryerson and a letter from Amica dated March 7, 2025, averaged his policy limits with the lower Sharon town assessment value and a Zillow estimate of average home costs in the area.
Ryerson claims this method reduced his initial ACV from an adjuster's calculation of approximately $733,326 (Replacement Cost Value less depreciation, as detailed in an Amica letter citing their adjuster's figures) to a "Broad Evidence Rule ACV calculation" of $315,375.61. After his $5,000 deductible, the initial payment offered was $310,375.61.
"I moved to Sharon Springs three years ago and purchased homeowners insurance from Amica. They stipulated how much coverage I needed and I paid the premiums," Ryerson said. He noted that Amica had even included a rider providing 30% additional coverage above his dwelling limit at renewal. His dwelling policy limit was $593,000, with an additional coverage endorsement of $177,900, according to the Amica letter.
Ryerson's primary concern is that while his policy is described as providing "replacement cost coverage," Amica's letter states he will receive the actual cash value until the home is rebuilt. The remainder of the funds, up to the replacement cost or policy limits (whichever is less, after accounting for the ACV already paid), would only be available after he completes the rebuild out-of-pocket and submits documentation of the costs.
"They said my policy will only pay the rest... WHEN THE HOME IS REBUILT AND PAID FOR BY ME!!!! What's the sense of insurance then?" Ryerson questioned. He asserts that this practice contradicts the common understanding of "Full Replacement Cost" and "Actual Cash Value" policies, and differs from regulations in many other states where a total loss typically results in a payout of policy limits without such conditions.
The Amica letter confirms the use of the Broad Evidence Rule, stating, "New York allows for the use of the Broad Evidence Rule in calculating the actual cash value of damages...Rather than determining the actual cash value of a property by means such as replacement cost less depreciation, the broad evidence rule allows for other considerations in the calculation of the actual cash value at the time of loss." The letter details that the calculation averaged the "Amica ACV (RCV-depreciation)" of $733,326.83, the "Tax Assessor building value" of $55,000.00, and the "Zillow market value ($163,600) less land value ($5,800)" of $157,800.00 to arrive at the $315,375.61 figure.
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