On a HO Deluxe replacement cost policy if there exists an inability to match the existing item on the structure is the insurance company then obligated to replace all items(including the undamaged ones) so that all items match in appearance as they did prior to the loss? For example:

On this claim one-third of the windows are damaged; however because of the age of the house and style of construction matching windows are no longer available. If that one-third is replaced with a newer style the windows will be different and cause an aesthetic problem as to the appearance of the house.

Please advise as to what the insurance company is responsible for in this instance.

Indiana Subscriber

This is one of the big points of disagreement within the industry and courts. In Holloway v. Liberty Mutual Fire Ins. Co. 290 So. 2d 791 (La. Ct. App 1974) the court ruled that where replacement of undamaged property was necessary to achieve an aesthetically pleasing repair and prevent devaluation of the property, then an entire replacement is in order.

 On the other hand, Weiler v. Union Ins. Co. 2006 WL 2403935 (not designated for permanent publication) stated that when hail damaged one side of the insured's house and the replacement siding could not be matched to the siding on the other sides, the court ruled that only the damaged side should be replaced, that the policy was clear on that language.

 Many states now have fair claim settlement practice regulations in place, so you may want to check state statutes. FC&S has long maintained that the insured is not restored unless everything matches, but with court cases falling on both sides of this, we advise that you check with the state in question.

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis