Search FCS
Online Library Free Trial Newsletter Sign-Up Sign In
 

Insurance Q&A of the Week: Loss Settlement and Increased Costs

The current cost of lumber and other building materials is unusually higher than normal; how does this affect claim settlement when the loss occurred before the building materials become so expensive?

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Hello, My question is in regards to claim payments. We had hail claims in May and June of 2020 and have made ACV payments for the damages. We have holdback available for replacement cost coverage HO-3 policy form HO 00 03 05 11. With the dramatic increase in building materials and labor, do we owe the extra costs or the cost at the time of loss? Some claims have more than doubles in cost. Thank you!

This premium content is locked for
FC&S Expert 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?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

FC&S Editors

 

Get Answers Directly From the FC&S Experts

Submit your coverage interpretation question to the editors of FC&S for quick and reliable information.

Question of the Week

Insurance Coverage Q&A: Nonrenewal of Association Policy and Loss Assessment ›

When an association policy is nonrenewed and the new policy is substantially more so that unit owners are assessed for the increase in premium, can they file a claim under their loss assessment coverage for the increase?

Question of the Week Archive ›

Weekly Highlights

Emerging Risks ›
Litigation Watch ›
Fraud of the Week ›

Fast Things You Need To Know

Copyright © 2023 ALM Global, LLC. All Rights Reserved.