Property Insurance FundamentalsQuestion 245 of 474
A set of four matching chairs is worth $2,400; after a covered loss destroys one, the remaining three are worth $1,500. Ignoring the deductible, the pair or set clause pays:
a.$600
b.$900
c.$1,500
d.$2,400
Explanation
The pair or set clause measures the loss as the difference between the value of the set before the loss and the value of what is left, which is $2,400 minus $1,500, or $900. That is more than the $600 one chair alone would fetch, because breaking the set destroys value in the survivors. The insurer need not pay the whole $2,400 unless it chooses to take the set.
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