...replacement cost provision will not live up to its potential, however, unless all conditions of the policy are met by both the insured and insurer. Good underwriting and well-established values that are kept current are essential.
Just as important, knowing what you can and cannot expect from the policy’s coverage before a loss occurs is critical to helping the insured manage their risk. It’s also extremely valuable during a property loss adjustment in maximizing recovery.
Replacement cost coverage was developed to serve both insureds and insurers. But like all of the provisions in the policy, the degree to which it benefits each depends on how well it is understood and then applied when the insurance is called to deliver!____________________
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Ronald A. Cuccaro, SPPA
Sheila E. Salvatore
ADJUSTING TODAY is published as a public service by Adjusters International, Inc. It is provided for general information and is not intended to replace professional insurance, legal and/or financial advice for specific cases.
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