By Michael Perlmuter, JD, President & General Counsel
and Jeffrey O’Connor, SPPA, Vice President
Insureds seem to take great comfort believing their replacement cost insurance will fully cover losses to their business or home when in fact they should not be sleeping so peacefully.
It is painfully clear during our initial conversations with clients experiencing a loss that they believe their claim to be “simple” or “straight forward” because they have “replacement cost insurance.” The insureds are adamant in the assumption that their replacement cost coverage obligates the insured to pay the “cost of replacement.”
Is this true? Absolutely not . ….