Making the Policyholder Whole: Property Insurance Coverage for Both the Damaged and Undamaged Parts of a "Pair of Set"


...and half the chairs are damaged. Many policies contain the following clause: the event of loss or damage by a peril insured against to any article or articles which are part of a pair or set, the measure of loss or damage to such article or articles shall be, at the Insured’s option:

Option B expressly allows the insured to claim replacement of the entire pair or set, providing that all items are surrendered to the insurer for salvage.

Some policies address the “pair and set” issue in what is called a “Consequential Loss” or “Consequential Reduction In Value” clause, which usually provides in relevant part:

This policy also insures the reduction in value to the remaining part or parts of any lot merchandise usually sold by lots or sizes, color ranges, or other classifications due to damage to or destruction of a part of such lots or other classifications due to a cause of loss not otherwise excluded.

…most hotel rooms (especially in branded hotels) contain a ‘set’ of matching furniture, whereby each item in the room complements the whole and provides the room with the look and feel of a uniform décor — which is important in the hotel business.