Common use of Claims Settlement Clause in Contracts

Claims Settlement. We can choose to settle your claim by: • replacing; • reinstating; • repairing; • payment. Replacement will be on a like for like basis or based on the nearest equivalent available in the current market. If we are able to replace property, but we agree to make a cash settlement, we will only pay you what it would cost us to replace the item as if it were new. In settling claims for loss or damage there will be no deduction for wear tear and depreciation. Our liability in respect of loss or damage arising out of one occurrence shall not exceed the amount stated against each item in the Schedule. The sum(s) insured will not be reduced by the amount of any claim payment. If we accept a claim under Section 1 we will also pay for the following: a. Architects’ and surveyors’ fees to repair the buildings. These fees must not be more than those recommended by the relevant professional institutes. However we will not pay fees for preparing any claim. b. The cost of demolishing or supporting the damaged parts of the Buildings which we have agreed to pay. c. The cost of meeting building regulations or municipal or local authority bye-laws. However we will not cover any cost you are legally responsible for paying because of a notice served on you before the date of the loss or damage.