Coinsurance and Valuation – Part 2
Under the valuation condition in a property policy, you can choose to settle a claim using ACV instead of RC (even if you have RC on the declarations page). In…
Commercial Lines
Profit & Overhead When Insureds Repair Their Own Damage
Your insured is a contractor. He wants to repair insured damage to his own building to ensure that the job is done right. Or, let’s say he negligently causes damage…
Tenants I&B and Insurable Interest
The carrier has denied payment for covered damage to our insured tentant’s improvements and betterments based on a clause in the lease that states that all additions, alterations, etc. become the property…
ACV vs. Market Value vs. Functional Value vs. Agreed Amount
Your insured buys a building for $250,000. The ACV of the building is closer to $750,000, but the insured only wants to insure the amount of his financial investment. Since…
Does the BOP Cover Filling Station Gas “Theft”?
This article was referenced in our VUpoint newsletter, Vol. 1, No. 14, September 18, 2000 and is based on a question submitted to our “Ask an Expert” service. Newsletter readers…
Misidentification of Named Insureds on Insurance Policies
A significant source of uncovered claims (many that result in E&O claims against insurers and agents) involves the failure to (properly) identify named insureds on an insurance policy. For many…
How to Value Leased Property Claims
Below is a recent “Ask an Expert” question we received involving a Business Owners Policy. While we attempted to address the valuation issues raised from the standpoint of the BOP,…
Installation Floaters vs. Riggers Liability
At last count, we’ve had 15 questions concerning the difference, if any, between coverage afforded by inland marine installation floaters and riggers liability forms. For example: “I am working on…
Risk Retention Groups
“I have a residential general contractor that is being offered coverage by a Risk Retention Group. I know that Risk Retention Groups are insurance companies that are formed and owned…
Warranties and Protective Safeguards Endorsements
The inland marine form on a tree surgeon’s stump grinder included a “Fire Extinguisher and Brush Burning Warranty” endorsement. Vandals destroyed the grinder by burning it. The insurer has denied…
