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I have a friend that is a client. Last February he bought a new refrigerator and when the appliance store delivered the refrigerator they tore the new kitchen rolled goods flooring.

My friend called the appliance store and the store filed a claim with his insurance company, Erie insurance. About 2 weeks later an Erie adjuster shows up at friends home. My friend had an estimate for a new floor from the same company that installed it 10 months earlier. The Erie adjuster said they won't pay for a new floor and will depreciate the flooring. The Erie adjuster said my friend should file with his own insurance company and they will be subrogating Erie. The Erie adjuster said to my friend that I should explain actual cash value to him.

I did explain actual cash value but my friend has replacment cost on his dwelling, etc. The insuranace claims department said quote "The floor would be covered under the dwelling limit, with replacement cost."

Because it was the fault of the appliance store does my friend deserve a floor of like kind and quality from Erie?

No, it's called insurance hardball. As a personal lines agent who cares not only about your friend, but of all your clients, you're expectation is that claims are settled 'fast, fair, and friendly' by 'good neighbor's and good hands'. Forget it.

You've got a couple of choices for advising your friend/client. He/she can file a small claims suit for replacement cost, most likely win and the defendant will turn the claim back over to Erie and they will pay the full judgement.

They can take the ACV settlement, eat the difference and have the floor repaired, and then sue for the difference.

Or, they can file with their own carrier, advance the deductible and wait for full settlement during subro to recover their deductible. But then they've got the 'ding' on their own insurance record through no fault or negligence of their own and heaven help them should they suffer any other kind of claim in the next 3 to 5 years. Then try explaining why they're non renewed by their current carrier for frequency issues.

When they bought the policy from you, they were buying security and the knowledge that you'd make things right. Through no fault of yours or theirs, your reputation is now challenged. You've got a Faustian choice to make...good luck.

Having recently gone through a similar issue, the appliance store has the obligation to repair/replace the floor as it was prior to the damage caused by their installers.

The adjuster is being a twit by saying they'll only pay ACV. I believe a court would rule that they would have to use a replacement cost basis.

Best suggestion - there are firms that would provide free legal advice. Chances are they will advise that filing a claim in small claims court is the best way to go. Get three estimates to repair the floor. If all three indicate the entire floor would need to be replaced, then file a claim in small claims court.

FYI, my situation was the wood flooring in my study was damaged by a satellite dish installer. We received an estimate to repair the floor (which required full replacement) and the contractor agreed to pay the full amount, admitting they were at fault.