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Insurable Interest and Limit of Liability
- insured must have insurable interest in property at time of loss
- regardless of nbr of insureds with insurable interest, max payable is the limit
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Deductible
- on a per-loss basis
- max deductible is applied for the loss
- minimum deductible is $500
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Your Duties After Loss
- give prompt notice
- notify the police
- notify credit card company
- protect property from further damage
- cooperate with insurer
- prepare an inventory
- verify the loss
- sign a sworn proof of loss
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Loss Settlement
- personal property: lesser of ACV or replacement / repair cost
- losses to building: if limit is ≥ 80% of replacement cost, pay replacement cost up to limit; otherwise pay greater of ACV and replacement cost * (limit / 80% value)
- insurer pays ACV, insured has up to 180 days to decide to repair and collect replacement cost
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Loss of a pair
- either pay missing item
- or pay difference between ACV of pair and remaining item
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Our option
- most times insurers choose to pay the value of loss
- however the Our Option clause reserves the right to the insurer to repair or replace damaged property with similar property if they can purchase repair or replacement items cheaper
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Mortgage Clause
- loss is payable jointly to mortgagee and insured
- mortgagee has independent rights to collect its insurable interest from insurer, even if claim was denied
- in case of cancellation, insurer must notify mortgagee at least 10 days in advance
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