Unetco Industries Exchange v. Homestead Insurance

Introduction

Appellant Homestead Insurance Company moved to compel an appraisal of two properties for the purpose of determining replacement cost value and to stay trial proceedings until completion of the process. The court granted the motion “only as to the amount of loss as stated in the policy and not the amount of loss covered by the insurance.” Appellant appeals from the denial of its motion as to replacement cost. We modify the order to include an appraisal of replacement cost and affirm as modified.

Statement of Facts

Respondent Unetco Industries Exchange (Unetco) owned two adjacent mansions in Beverly Hills. In August 1993, Unetco obtained earthquake and flood insurance on the mansions from appellant Homestead Insurance Company (Homestead). The mansions sustained significant damage in the January 17, 1994, earthquake, during the Homestead policy coverage period.

The policy provided $6 million in coverage. For earthquake damage, there was a deductible of 10 percent “of the total values, as defined in the valuation clause(s).” The valuation clause provides Homestead “shall not be liable for more than the actual cash value of the property at the time any loss or…