Hotel Property Insurance
Pair, Set and Match: Replacement of Undamaged Hotel Furnishings
Ensuring a Uniform Look
It should come as no surprise that when a hotel is damaged by a disaster, it is expected that replacement furnishings match throughout the hotel. As a result hotel owners purchase property insurance that is expected to cover the cost of doing so.
Some insurance companies, however, suggest that hotel owners seek a "windfall" when they claim the replacement cost of matching hotel furnishings. This article explains why the insurers are wrong and discusses the policy language that will minimize disputes regarding this "Pair and Set" issue.
"A hotel´s primary source of revenue is the rooms it sells. In the context of a policy sold to a hotel, the relevant "merchandise" is the hotel´s rooms and their contents, and in that context there can be little doubt that furniture is "merchandise" that is part of a set."