Zochert v. National Farmers Union Property & Casualty Company

Zochert Farms (plaintiff) had a property insurance policy with National Farmers Union (defendant); after covered silos were damaged, the insurer's adjuster calculated the payment as replacement cost minus depreciation, while Zochert argued depreciation should not reduce the actual cash value owed.

Whether the replacement cost of damaged property under an insurance policy must be adjusted to account for depreciation of the damaged property.