All insurance policies include clauses and conditions wherein the insured client is reminded of certain rights, obligations and responsibilities. While the insurance wording may differ slightly from policy to policy, the intention of the clauses is to clarify the position of the insurer before any dispute arises or to prevent any dispute ahead of settlement stage.
It should always be the insurer’s intention to ‘fairly and reasonably’ put the insured client/owner back into the position they were in before the insured loss or damage arose. The insurer may elect to physically re-instate or repair the damaged buildings by making use of their own elected contractors, replace an item, settle cash in full or even part cash by way of combination with repair or replacement.
The insured property owner can therefore not have an expectation that insurer will necessarily pay cash settlement in all instances. Likewise, owners may not expect or insist that the insurer is obliged to arrange for repair or re-instatement of the damages.
The intention of the above is not to disenfranchise claimants but rather to allow for facilitation of prompt claim payments with a view to preventing drawn out and protracted settlement disputes.
Author: Brian Addison, Addsure
Contact Addsure – The Leaders in Sectional Title Insurance – to get fit and proper advice from advisors who understand sectional title. Contact us in Johannesburg on (011) 704-3858; in Durban on (031) 459-1795 and in Cape Town on (021) 551-5069