Our commercial property insured is a condominium complex. When we applied for the policy, we requested a blanket limit on the buildings of $1.3 million. We also included building code upgrade coverage. We attached a statement of values showing the replacement cost of each building in the complex. 

Recently a fire destroyed one of the buildings in the complex. On the statement of values the replacement cost for this building was shown as $250,000. As it turns out, the insured will need about $300,000 to replace the building, haul away the debris, and do some code upgrades. We told him that there was no problem because of the blanket limit.

However, the adjuster and his supervisor are adamant that the $250,000 shown on the statement of values is the most they will pay. When we put blanket coverage on this complex, we did it for just this reason—to make sure that a building would be truly replaced in the event of a total loss.