The reinstatement value clause is defining the terms and conditions of the payment of the reinstatement claims which are coming under the insurance policies of property. It is defining the reinstatement value that is payable after the loss and the conditions under which this value is been altered even after the insurer is accepting the claim.
The principle of indemnity is inspiring the definition of RVC. According to this, the cost of the reinstatement of property is the cost that can be incurred when the property is reinstated in the same place where it is existing before the loss. This cost will not include the below-mentioned things and before going for RVC claims you have to make a note of this:
- Cost of modification
- Transfer cost to other location
- The difference in the positive cost for reinstating property at another place
Conditions applying to RVC claims
The amount of the claim can be changed to the standard claim amount when the reinstatement of the property is not completed within 1 year after the destruction or loss.
The only standard cover amount will be released by the insurer unless the insured has spent the money on replacement or reinstatement of damaged property
At the time of loss, When the value of the damaged property is exceeding to the insured sum under the policy then the claim can be prorated accordingly. The insurer will have to bear the excess.
For more info on reinstatement work singapore which is handling the reinstatement value claims you can visit https://www.masonworks.com.sg/services/reinstatement-work/