Loss Settlement Terms Clause Samples
The Loss Settlement Terms clause defines how losses or damages covered by an insurance policy will be evaluated and paid out. It typically outlines the methods used to determine the value of damaged property, such as actual cash value or replacement cost, and may specify any applicable deductibles or limits. By clearly establishing the process for calculating and distributing claim payments, this clause ensures both the insurer and the insured understand their financial responsibilities and helps prevent disputes over settlement amounts.
Loss Settlement Terms. Subject to items 1., 2., 4., 5., 6., 7., and 8. under How Much We Pay, "we" pay the lesser of:
a. the amount determined under Valuation Of Property Losses;
b. the cost to repair, replace, or rebuild the property with materials of like kind and quality to the extent practicable; or
c. the "limit" that applies to covered property.
Loss Settlement Terms. Subject to the “terms” shown above, “we” settle losses according to the Replacement Cost Terms. If the Replacement Cost Terms do not apply, “we” settle losses according to the Actual Cash Value Terms. In the Replacement Cost Terms and the Actual Cash Value Terms, replacement cost and cost to repair or replace do not include any increased cost that results from the enforcement of a code, ordinance, or law, except to the extent that coverage for such increased cost is provided under the Incidental Property Coverage for Increased Cost – Ordinance Or Law.
Loss Settlement Terms a. Subject to the “terms” of How Much We Pay For Loss Or Claim, “our” payment for damaged covered property will be the smallest of:
1) the “limit” that applies to PART B. of this endorsement;
2) the cost to repair the damaged property;
3) the cost to replace the damaged property with like kind, quality and capacity on the same “insured premises”; or
4) the necessary amount actually spent to repair or replace the damaged property.
b. Except as described in the Environmental, Safety and Efficiency Improvements condition set forth below, “you” are responsible for the extra cost of replacing damaged property with property of a better kind or quality or of a different size or capacity.
Loss Settlement Terms. Subject to the “terms” shown above, “we” settle losses according to the Replacement Cost Terms. If the Replacement Cost Terms do not apply, “we” settle losses according to the Actual Cash Value Terms. In the Replacement Cost Terms and the Actual Cash Value Terms, replacement cost and cost to repair or replace do not include any increased cost that results from the enforcement of a code, ordinance, or law, except to the extent that coverage for such increased cost is provided under the Incidental Property Coverage for Increased Cost – Ordinance Or Law.
1) Replacement Cost Terms That Apply To Coverage A And Coverage B Only
a) These Replacement Cost Terms apply only to buildings covered under Coverage A or Coverage B that have a permanent foundation and roof. However, Replacement Cost Terms do not apply to:
(1) window air conditioners;
(2) awnings and canopies;
(3) appliances;
(4) carpets; or
(5) antennas; whether or not attached to a building.
b) In determining the replacement cost, do not include the cost of:
Loss Settlement Terms. Subject to paragraphs 1., 2., 4., 5., and 6. under How Much We Pay, "we" pay the lesser of:
a. the amount determined under Valuation at the time of loss to the property;
b. the cost to repair the property to its condition just before the loss;
c. the cost to replace the covered property with other property of equivalent kind and quality, to the extent practicable; or the "limit" of insurance. Repairs to plywood, plastic, fiberglass or molded hull boats will be made according to the manufacturers' specifications or accepted repair practices.
Loss Settlement Terms. Subject to the deductible or other limitation that applies, “we” pay the lesser of:
a. the “limit” that applies;
Loss Settlement Terms. Subject to paragraphs 1., 2., 4., 5., and 6., in this How Much We Pay section, we pay the least of:
a. the amount determined under Valuation of Property;
b. the cost to repair, replace, or rebuild the property with material of like kind and quality to the extent practicable; or
Loss Settlement Terms a. Subject to the “terms” of How Much We Pay For Loss Or Claim, “our” payment for damaged covered property will be the smallest of:
1) the applicable “limit” of liability;
2) the cost to repair the damaged property;
3) the cost to replace the damaged property with like kind, quality and capacity on the same “insured premises”; or
4) the necessary amount actually spent to repair or replace the damaged property.
b. Except as described in Environmental, Safety and Efficiency Improvements below, “you” are responsible for the extra cost of replacing damaged property with property of a better kind or quality or of a different size or capacity.
c. If “you” do not repair or replace the damaged property within 24 months after the date of the “home system breakdown,” then “we” pay only the smaller of:
1) the cost it would have taken to repair or replace at the time of the “home system breakdown”; or
2) the actual cash value at the time of the “home system breakdown”.
Loss Settlement Terms. Subject to the “terms” shown above, “we” settle losses according to the Actual Cash Value Terms. In the Actual Cash Value Terms, cost to repair or replace does not include any increased cost that results from the enforcement of a code, ordinance, or law, except to the extent that coverage for such increased cost is provided under the Incidental Property Coverage for Increased Cost – Ordinance Or Law.
1) the cost to repair or replace the lost or damaged part of the property with materials of like kind and quality, to the extent practical; or
2) the “actual cash value” of the lost or damaged part of the property just before the loss.
Loss Settlement Terms a. Subject to items 1. and 2. above, and items 4. through 8. below, "we" pay the lesser of:
1) the amount determined under Valuation Of Property Losses;
2) the cost to repair, replace, or rebuild the property with materials of like kind and quality to the extent practicable; or
3) the "limit" that applies to covered property.
b. If replacement cost valuation applies, "we" pay no more than the actual cash value of the damaged property before the repair or replacement takes place. If the repair or replacement is completed within 12 months of the date that the initial actual cash value payment is made, "we" will pay the difference between the actual cash value and the replacement cost of the damaged property, subject to item 3.a. above.