True or false: an itemmust be damaged or destroyed to qualify for reimbursement under a property insurance policy.
While this might seemtobe true, it is not—always.
An exception comes when the property’s value is derived from the pair or set to which it belongs. In such cases, a policyholder can be compensated for the overall value of the set, even when only one of its members has been damaged or destroyed.
Although that principle is woven intomany policies, it has been subject to various interpretations by insurers, insureds and the courts. Yet its application can be critical in returning a business to normal operating conditions.
In this issue of Adjusting Today, attorney Gary Thompson discusses key aspects of the coverage, situations where it often comes into play, and how it has been interpreted. We hope you find it to be interesting and informative reading.
Sheila E. Salvatore Editor