Subrogation is a critical legal principle in insurance that empowers insurers to recover amounts paid out in claims from third parties who are responsible for causing or contributing to the loss. Here’s how it works:…
The basis of indemnity, commonly referred to as “new for old” or “replacement cost,” is a fundamental principle in property damage insurance. Under this basis, policyholders are entitled to receive compensation equivalent to the cost…
Soft costs play a crucial role in property recovery and restoration efforts, encompassing expenses beyond direct physical repairs. Insurance policies that cover soft costs provide essential financial protection for property owners, ensuring comprehensive recovery from…
Property insurance offers coverage for a range of costs beyond basic damage repairs, ensuring comprehensive protection against unforeseen events. Understanding these covered expenses can help property owners effectively manage risks and recover swiftly in challenging…
Debris removal is a crucial aspect of property insurance, encompassing the costs associated with clearing and disposing of wreckage and remains following a covered loss or event. This coverage, standard in policies such as homeowner’s…
The timely claims payment requirement is a fundamental aspect of insurance policies aimed at ensuring policyholders receive their entitled benefits promptly and fairly. This requirement, mandated by law in many jurisdictions, imposes obligations on insurance…
Insurance policies provide essential coverage for a range of items tailored to protect businesses and individuals from various risks. Understanding these covered items helps policyholders ensure they have adequate financial protection in place. Insurance coverage…
Defense expense coverage in insurance refers to the crucial financial support provided for legal defense costs incurred in responding to claims or lawsuits. This coverage is integral to liability insurance policies, including general liability, professional…
Normal settling refers to the gradual sinking or shifting of a building’s foundation into the ground, a natural process that can lead to minor structural changes such as small cracks. Insurance policies typically exclude coverage…
