Policy Structure & ProvisionsPregunta 466 de 474
After a covered loss, the policy's option to repair or replace allows the insurer to:
a.Refuse the claim when repairs cost too much
b.Name the contractor the insured has to hire
c.Restore the property instead of paying cash
d.Pay the insured the full policy limit at once
Explicación
The insurer reserves the right to pay the value of the lost property, to pay the cost of repairing it, or to repair or replace it with property of like kind and quality, which caps what an insured can insist on in cash. The option is a settlement choice, not a way out of the claim, so refusing a costly claim is not what it permits, and it does not force the insured to hire anyone.
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