I’ve got a claim from an insured who experienced a water loss. Their travertine tile needs to be replaced throughout to match. The tiles are 16x16, but the contractor couldn’t find a good match. However, they did find 18x18 tiles that are a decent match.
State Farm wants to cut down the tiles to 16x16, but the contractor says they won’t warranty their work. By cutting the tiles, the manufacturer warranty is also voided. There’s a significant difference between replacing just the damaged floor tiles and replacing them all. Our stance is that all the floors need to be replaced, and we shouldn’t accept new floors without warranties.
I’ve attached the policy below for your reference.
Arizona Subscriber
In this situation, the policy provides coverage for replacement cost for similar property. Therefore, since the 16 inch travertine tile isn't available, the insured is entitled to similar title - 14 or 18 inch travertine tile. the closest that's available. Cutting down 18 inch tile to fit does not restore the insured to his preloss condition, and that is what he is owed. While Arizona does not have any statutes that deal with matching, there is this court case: Hanks v. Am. Family Mut. Ins. Co., 2013 U.S. Dist. LEXIS 73186 (D. Ariz. 2013) which says in part: "The reasonable expectations doctrine for insurance claims states that when insurance terms cannot be understood by the reasonably intelligent consumer, the court will interpret them in light of reasonable expectations of the average insured. Thus, matching can be enforced when contract allows for it or when consumer reasonably believes contract allows for it, even when it does not."
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