ACV vs Rep Cost for leased property loss

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Brad Jones
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ACV vs Rep Cost for leased property loss

Post by Brad Jones » Thu Sep 26, 2019 7:49 am

I’ve got a claim where the carrier is only paying ACV for a leased copier loss. Is this common versus paying replacement cost?

mccluney
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Re: ACV vs Rep Cost for leased property loss

Post by mccluney » Thu Sep 26, 2019 10:59 am

First, review the policy coverage to see loss payment for leased property. Second, if ACV, then look for the exception for leased property under written contract. Usually if the client is responsible for loss, then RC coverage should apply.
The major problem is that there is no standard coverage forms. This is specially true of BOP policies. Agents need to be aware.

MBRCatz
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Re: ACV vs Rep Cost for leased property loss

Post by MBRCatz » Thu Sep 26, 2019 11:30 am

Another thing that can be in play is the wording on the replacement cost provisions. It's not uncommon that replacement cost provision doesn't apply until after the damaged property is repaired or replaced. If it's not repaired or replaced, actual cash value may apply.

mccluney
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Re: ACV vs Rep Cost for leased property loss

Post by mccluney » Thu Sep 26, 2019 4:24 pm

Catz good call. You should ask the adjuster why the claim is not being paid out RC. Catz is correct if RC is available for this item, the copier must be replaced and the difference will be paid.

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