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Principles Applicable to Claims for Recovery on a Replacement Cost Basis

Many commercial first-party property insurance contracts detail circumstances under which an insured may seek and recover for physical loss or damage to insured property on a replacement cost basis. If the contract does not provide that option, or if the conditions for replacement cost recovery are not met, the insured's recovery typically is limited to the actual cash value of the lost or damaged property. Because the measured difference can be substantial, certain principles have evolved in practice and case law concerning this distinction.

32 minute read August 30, 2011 at 03:59 PM
By
Catherine A. Mondell And And M. Patrick Moore, JR.
Principles Applicable to Claims for Recovery on a Replacement Cost Basis

Many commercial first-party property insurance contracts detail circumstances under which an insured may seek and recover for physical loss or damage to insured property on a replacement cost basis.

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