Sentences with phrase «insured on a replacement cost basis»

For example, suppose that you own a building that you have insured on a replacement cost basis.

For the sake of simplicity, we'll assume that all of the property cited in the following examples is insured on a replacement cost basis at 100 % of its value (meaning no coinsurance applies).

Assume that you own a building that you have insured on a replacement cost basis.

Not exact matches

You can insure your property based on its actual cash value or its replacement cost.

Insure the property on a replacement - cost basis but make sure the coverage limit is adequate.

The insured claimed in each case that the insurer's letter and attached «STANDARD REPORT,» when read together, gave rise to a legal obligation to determine the «actual cash value» of the property on the basis of a replacement cost less ten percent depreciation, an amount more than that determined due by the insurer and later by a referee.

Though, experts usually recommend insuring your property on a replacement cost basis because if you bought an item several years ago, its current value may be considerably less than the total cost of replacement.

This clause requires that policyholders insure their property or revenue stream (with respect to business interruption) to an appropriate value (shown as a percentage) and that the insurer receives a fair premium for the risk (whether on a replacement cost basis or an actual cash value basis — the latter being subject to depreciation).

Replacement Cost of rebuilding your home is based on the insured value of the home.

When buying home insurance, you should insure your home based on its replacement cost, which is the amount you need to rebuild it if damaged or destroyed, and not its market value, which is what you could sell your home for in its current condition.

For example, if you've just purchased a derelict home that you intend on tearing down to rebuild, you will want to insure it on an actual cash value basis because there is no point in getting replacement cost (see our Q&A on How Should I Insure a Vacant Building to learn insure it on an actual cash value basis because there is no point in getting replacement cost (see our Q&A on How Should I Insure a Vacant Building to learn Insure a Vacant Building to learn more).

Some carriers insure projects based on the expected replacement cost of the property once the project is completed, whereas others stair - step the coverage using the current replacement costs of the project.

Even if you have elected to insure your business personal property on a replacement cost basis, any loss involving works of art will be determined based on the actual cash value of the damaged item.

A specific kind of renters insurance that insures for actual replacement cost rather than based on the calculation of the depreciated cash value or market value.

A lender requires you to insure your home based on its replacement cost, or the cost to rebuild it.

A specific form of renters insurance personal property protection that insures for actual replacement cost rather than based on any calculation of depreciated actual cash value or market value.

However, the insured value at the time of the loss is usually required to be at least 80 % of the replacement cost before your policy is covered on a replacement cost basis.