ACV vs Rep Cost for leased property loss

[Brad Jones]

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]

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]

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]

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.

[gebhardt]

Was their an endorsement for the leased copier on the policy? Was it scheduled?