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How to accurately calculate repair, replacement costs

What if the contents of a damaged property are not covered, but the only way to repair that insured dwelling is to move the contents out of the way?

By FC&S Editors | Updated on October 11, 2017
An appraisal may help an insured secure adequate repair costs. (Photo: iStock)

Analysis brought to you by the experts at FC&S Online, the unquestioned authority on insurance coverage interpretation and analysis for the P&C industry. To find out more — or to have YOUR coverage question answered — visit the National Underwriter website, or contact the editors via Twitter: @FCSbulletins.

Question: My client lives in Marin County, Calif., where the costs of the building trades are much higher than in other areas. A dispute has arisen because the cost of painting the house on the inside, via a contractors sub-bid, is roughly double what the Xactimate program estimated the cost to be. The insured will have actually expended an amount in excess of the settlement, based on Xactimate pricing, in doing the actual repair. The insureds position is that the insurer owes what the insured “actually and necessarily” spent for the repair of the like and kind and not what a computer platform estimates it to be, for the purpose of resolving the claim. What would the Insured be entitled to, the amount spent or the estimated amount by Xactimate for the same work? 

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