If a claim is yet to be resolved but the policy has switched from replacement to sum insured since the damage was done, which policy is applicable for settlement?
The "replacement" one in place at the time of the loss which initiated the claim, or the current "Sum Insured Value" policy?
Asked: 19 July 2014
AA Insurance advises:
The policy that was in place at the time of the loss will form the basis of settlement for any claim. If your home insurance policy is now based on a sum insured amount, then any future claims will be settled on this.
For queries about which policy applies to the settlement of your claim, please contact your insurer.
Insurance Council of New Zealand (ICNZ) advises:
For settlement purposes, it is the policy that was in force at the time of the loss. In the circumstances described, it would therefore be the full replacement policy that applies.
The policy that you had in place at the time of the event is the policy that will be referred to for your earthquake claim.
The policy that was enforce at the date of loss.
Southern Response advises:
The policy that was in force at the time of the loss. In the scenario described in the question, this would be the replacement policy.
The policy in place at the time of loss is the relevant one
The policy in place at the time of loss, i.e. the replacement value policy, would be applicable.