Actual Cash Value, Replacement Cost, and Property Coverage Forms
A contractor is insured under a CP 00 10 04 02, which covers his premises and contents. Tools and equipment were stolen from the premises. The insured also has an inland marine policy that covers his tools and equipment with actual cash value (ACV) coverage.
While the inland marine policy pays for the ACV of the loss, should the CP 00 10 pay the difference up to replacement cost value (RCV) since the loss occurred on premises, despite the traditional other property not covered clause, which excludes “property that is covered under another coverage form of this or any other policy in which it is more specifically described, except for the excess of the amount due (whether you can collect on it or not) form that other insurance”?
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