- Monday, January 18, 2010, 9:17
- Property Insurance
The policy wording will incorporate a definition of Indemnity under the title “Basis of Indemnity”. The way indemnity is calculated will vary depending upon what is insured. For example:
Buildings
The normal basis for buildings is the cost of repair or reinstatement. Adjustment may be necessary to compensate for “betterment”. This betterment can arise in two ways:
Full story