The insured has a Guaranteed Replacement Cost option on their policy with no limit. The limits were paid and we are dealing with the GRC. The insured's house suffered a significant fire and they chose to purchase another home instead of repairing. The insured residence was 7,000sf. The new home is 4,200sf. After deduction for land value, the amount available is substantially less than the full replacement cost settlement. The insured is doing renovations and the full amount claimed will be less than the total settlement available.
The carrier is stating they will not consider the renovations as part of the recovery and will only pay for the home purchase. The policy form is attached. Please advise your opinion on using the renovation cost as part of the GRC recovery.
Michigan Subscriber
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
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected]