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Financial advisory
RES5Financial Advisory Services✓If a policy settles on a reinstatement (new-for-old) basis, what must the sum insured be set at to avoid average?
The sum-insured basis must match the settlement basis: a reinstatement policy must be insured to full reinstatement cost, otherwise the property is underinsured relative to that basis and average applies.
Insuring to indemnity value while settling new-for-old, triggering average.
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