Where eligible and ineligible damage is insured in one policy, how will the insurance settlement proceeds be apportioned?
• If the Applicant’s insurance policy specifies the amount of coverage for each type of loss, the proceeds will be apportioned according to the policy limits. • If the insurer provides a Statement of Loss that specifies the amount of proceeds per type of loss, that will be used to determine the proceeds for eligible damage. • If the Applicant’s insurance covers eligible and ineligible damage (for example, property damage and business interruption losses respectively) without specifying limits for each type of loss, the proceeds will be apportioned based on the ratio of the Applicant’s eligible to ineligible damage. For example, if the Applicant’s total losses are 60 percent property damage and 40 percent business interruption, then 60 percent of the insurance proceeds would be applied to offset the eligible damage, since business interruption losses are not eligible for reimbursement under the PA Program.
Related Questions
- Could the insurance company possibly fight against paying for damage because we solitary had a homeowners insurance policy? Is there a special policy one wishes to cover property that is rented out?
- Where eligible and ineligible damage is insured in one policy, how will the insurance settlement proceeds be apportioned?
- What if I’m insured under another policy for the same loss or damage?
