Vandalism Damage Repaired by Insured

December 6, 2011

The form is CA 00 05 03 06. The insured had multiple garage owned vehicles damaged by vandalism. The insured carries comprehensive coverage for garage owned vehicles. The insured is capable of repairing the damage at its own facility. If the insured repairs the vehicles at its own shop, would the insurer owe the insured the retail price of parts, materials and labor, or would the following exclusion apply: We will not pay for your expected profit, including loss of market value or resale value?

Virginia Subscriber

The exclusion about expected profit is not applicable to this situation. That pertains to the possible sale and the loss of that sale of a covered auto. What you have to look at is the limits of insurance clauses. The most the insurer will pay is the lesser of the ACV or the cost of repair. So, whichever amount is the lesser, that is what the insurer will pay. And, the deductible on the policy applies under the terms of the deductible clause.