CMFAS PGI Property & Household Insurance question: common condition attached to reinstatement cover

CMFAS PGIProperty & Household Insurance

A common condition attached to reinstatement cover is that the repair or rebuilding must be carried out:

A By the mortgagee rather than the owner, using the lender's appointed contractor
B Only after the property's market value is reassessed
C Regardless of location, use or timing of the works
D With reasonable dispatch and often on the same site or for the same purpose

Show the answer and explanation

Answer: D. With reasonable dispatch and often on the same site or for the same purpose

Reinstatement cover usually requires the repair or rebuilding to actually be carried out, often with reasonable dispatch and on the same site or for the same purpose; otherwise settlement may fall back to indemnity.

Common mistake

Assuming new-for-old is paid without any obligation to actually reinstate on the same terms.

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CMFAS PGI Property & Household Insurance question: common condition attached to reinstatement cover

Answer: D. With reasonable dispatch and often on the same site or for the same purpose

Common mistake

Related CMFAS PGI questions

CMFAS PGI Property & Household Insurance question: common condition attached to reinstatement cover

Answer: D. With reasonable dispatch and often on the same site or for the same purpose

Common mistake

Related CMFAS PGI questions