An insured homeowner suffered $5,000 worth of covered wind damage to his roof as a result of a hurricane. The insured was paid for the loss on an actual cash value basis, but did not repair the roof until 10 months later. At that time, the insured sought the remaining holdback amount under a replacement-cost basis.

For purposes of this discussion, assume that the insured’s HO-3 form requires him to notify the insurer of his intent to recover on a replacement-cost basis within 180 days after the date of loss. Would the insured be entitled to the holdback amount when it took him more than 180 days to repair his roof?

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2022 ALM Global, LLC. All Rights Reserved.