Property Damage Insurance Claims
Overhead & Profit:
Its Place in a Property Insurance Claim
The inclusion of General Contractor Overhead & Profit in property damage insurance claims is traditional. Numerous courts of law, the Texas and Colorado Departments of Insurance and widely-accepted insurance publications all clearly recognize the need to include these expenses in situations where the policyholder is likely to incur such costs in repairing or replacing their damaged property.
"Widely-recognized construction estimating publications used in the property insurance industry define replacement cost to include labor, materials, and contractor's overhead and profit."
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Key Points and Page Numbers
- Understanding of the Role of the General Contractor – 1
- Some Examples of Overhead Expenses – 2
- Majority View: Payment Required if Use is Likely – 3
- Minority View: Payment Not Required Unless Incurred – 4
- State Insurance Commissioner Rulings – 5
- Industry Custom and Practice – 5
- Why GCO&P Always Should Be Included – 6