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 Posted: Sat Jul 08, 2006 11:42 am Post subject: Valued Policy |
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Valued Policy
A policy through which the insurer pays a certain amount of money to a policyholder or on behalf of the policyholder if there has been a definite loss.
Last edited by lakemen on Tue Apr 14, 2009 11:18 am |
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lakemen
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| Posted: Thu Aug 09, 2007 4:55 pm Post subject: Indemnification for a valued policy |
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How to caculate for the indemnity amount of a destroyed property under a valued policy
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buimanhtien
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| Posted: Fri Aug 10, 2007 5:47 am Post subject: |
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The purpose of indemnity is to restore you back to the same financial condition as you were before the loss occurred. The insurance company can consider calculating the loss in any of the following ways
- Repair-this is probably the most common form of ‘loss calculation'. The insurer will only pay the amount requires to repair the damaged property.
- Replacement- this process is used if the property suffers complete destruction or 'stolen and un-recovered'. The insurer will replace the insured item no-matter what it cost.
- Reinstatement- the insurer will reconstruct the damaged property with exact specification.
- Cash payment- If none of the above options suites you, the insurer will issue you a check for the damage. This one, however, is the most common form of claim settlement.
Hope this information will be of some help to you. |
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Juanita
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| Posted: Fri Aug 10, 2007 6:16 am Post subject: Indemnty Calculation |
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Hi!
There are several factors that may influence the calculation of the indemnity amount. If you are interested in restoring back the insured item then the indemnity value will be calculated as cost of re-construction of the property minus any depreciation.
or, If you can prove that you were interested in selling your property at the time of the loss then the amount will be calculated upon the market value of the property minus the site value.
Regards,
Fatman |
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fatman
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