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

ADJUSTERSINTERNATIONAL.COM

Uniformity

Claims by corporate policyholders can sometimes cause debate as to what constitutes a “pair” or “set” for purposes of these clauses. Each case will depend on context. For example, 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.

Hotels periodically replace all the furniture in a room at the same time, and so if a storm has damaged half the furniture (say, the desk and credenza), the hotel will replace the entire room. Or consider a hotel where 60 percent of the rooms have damaged furniture and the hotel replaces all the furniture in the entire hotel so as to maintain an overall uniformity in décor. Uniformity throughout the entire hotel is also important in the hotel business (especially for branded hotels) as guests expect to have the same basic room wherever they’re situated in the hotel.

On the other hand, a dog kennel probably does not care if each pen or cage matches the other. A storage business may or may not care — although some well-branded storage companies may care very much about each storage shed having precisely the same look. The policyholder’s particular business provides the context for considering the issue of what qualifies as a “set” for insurance purposes.

Other common adjustment issues include: the replacement of an entire roof when part of it is damaged where necessary to maintain uniform quality or appearance; the replacement of all the tile in a bathroom when some tiles are damaged where necessary to maintain uniformity; and the...

The policyholder’s particular business provides the context for considering the issue of what qualifies as a ‘set’ for insurance purposes.


RkJQdWJsaXNoZXIy NjIxNjMz