What does Broad Evidence Rule mean? Read on to discover the definition & meaning of the term Broad Evidence Rule - to help you better understand the language used in insurance policies.
Broad Evidence Rule
A valuation rule that has evolved in some states and does not adhere to the principle that the traditional measure of actual cash value (ACV) (replacement cost less depreciation) is the sole measure of value at the time of loss. This rule provides for the examination of every standard of value having a bearing on the property under consideration, such as the age of the property, the profit likely to accrue on the property, and the property's tax value. Ultimately, it calls for the selection of that "value," which, in the event of a total loss, will provide complete indemnification and no more.
We hope the you have a better understanding of the meaning of Broad Evidence Rule.