Broad Evidence Rule

Broad Evidence Rule

A rule allowing the admission of any evidence regarding a property's value in the process of determining the property's actual cash value. The broad evidence rule is used to determine how much an insurance company or other party should compensate for a property in the event of its loss, theft or damage.
References in periodicals archive ?
as of 2010 there were twenty-three states where courts had adopted the broad evidence rule, eleven states that concluded actual cash value is equivalent to fair market value, four that maintained actual cash value is replacement cost less depreciation, two that found it is replacement cost with no depreciation, and ten where no decisions on the topic were found.
Currently, the broad evidence rule is the most frequently used method of ascertaining actual cash value.
Over time, a number of elements have been identified in court decisions as relevant to determining actual cash value under the broad evidence rule.
In the case where the appraiser is left to choose the appropriate method, or where fair market value or the broad evidence rule is mandated, the assignment becomes more complex.
The appraiser may wish to incorporate a statement in the report that the broad evidence rule was considered in the development of the value conclusion and is consistent with the steps typically used in determining market value.
Using every standard of value having a bearing on a subject property is known as the application of the broad evidence rule.
Using the broad evidence rule has now become another possible option in determining the actual cash value of insured property in the event of a loss.
The ramifications of the application of the broad evidence rule are many, and reviewing each would require another article.