After a loss, a policyholder has a duty to take necessary measures to protect the property from further damage resulting from a covered peril. The question then becomes what costs associated with the emergency mitigation services are covered and is there a cap?
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Small Business Manufacturers Should Purchase Equipment Breakdown Coverage
Chip Merlin, Ashley Harris and I settled an Equipment Breakdown Coverage (aka Mechanical Breakdown Coverage) lawsuit in New Jersey yesterday. Chip Merlin took this picture of Ashley and me after the settlement. While the settlement is confidential, there are a number of lessons to be learned and reasons why this coverage is so important to small business manufacturers.
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Hurricane Irma and Actual Cash Value in Florida
Florida’s Third District of Appeal recently confirmed that insurance carriers are initially obligated to pay the true amount of the actual cash value (“ACV”), not just the insurance company’s estimate of the ACV.1 This obligation exists regardless of whether policyholders intend to use the money to make repairs to their home. The court also confirmed that insurance carriers are required to pay additional amounts up to replacement value only as work is performed and repair expenses are incurred.
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