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ATTENTION...
IMPORTANT INFORMATION
Storm Damage
Insurance REQUIREMENTS
806 KAR 12:095 Section
9
Section 9 Standards for PROMPT, FAIR, AND EQUITABLE SETTLEMENTS
Applicable to Fire and Extended Coverage Type Policies with REPLACEMENT COST Coverage.
(1) If the policy, contract, or certificate authorizes the adjustment and
settlement of the first party losses based on replacement cost, the following shall
apply:
(a) If the loss requires repair or replacement of an item
or part, any consequential physical damange incurred in making the repair or
replacement not otherwise excluded by the policy shall be INCLUDED in the loss.
The insured shall not have to pay for betterment nor any other cost to
the extent of replacement cost, except for the applicable deductable.
(b) If a loss requires replacement of items and
the replaced items DO NOT MATCH IN QUALITY, COLOR, OR SIZE, THE INSURER SHALL
REPLACE ALL ITEMS IN THE AREA SO AS TO COMFORM TO A REASONABLY UNIFORM APPEARANCE.
This applies to interior and exterior losses. The insured shall NOT
bear any cost over the applicable deductable.
(2) ACTUAL CASH VALUE
(a)
If the insurance policy provides for the adjustment and settlement of losses on
an actual cash basis on residential fire and extended coverage, the insurer shall
determine the actual cash value as follows: REPLACEMENT COST OF THE PROPERTY
AT THE TIME OF LOSS, less depreciation, if any. If requested by the
insured, the insurer shall provide a copy of the claim file worksheets showing any
and all deductions for depreciation.
(b) If the insured's interest is limited because the property
has no nominal or no economic value, or a value disproportionate to replacement
cost less depreciation, the determination of actual cash value as set forth in paragraph
(a) of this subsection shall not be required. If requested by the insured, the insurer
shall provided a written explanation of the basis for limiting the amount of recovery
along with the amount payable under the policy. (19KY.R.340;Am.783; 1380; eff 12-9-92;
28 Ky.R. 709; eff 11-21-2001 Tam eff. 8-9-2007.
Thought this information may be helpful to you
THANK YOU FOR YOUR ATTENTION!!!
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