We have a question about the meaning of some language in the Businessowners loss payment condition. The condition states that, whatever the amount of settlement, the insurer "will not pay you more than your financial interest in the Covered Property." We are uncertain about the meaning of "financial interest." If an insured has business personal property or real property that cost "X" and later the replacement of the same property costs "X+Y," presumably the financial interest is "X+Y." Also, if the insured has a mortgage for a percentage of "X+Y," we think that the insured's financial interest is still "X+Y." If our interpretation is correct, what is the purpose of the "financial interest" provision?

Kansas Subscriber

This provision is indeed puzzling, although it is logical that the insured is entitled to receive the value of "X+Y" in the situations you have presented.