The Benefits of Specified Replacement Value Cover

In New Zealand, many property risks face limited insurance capacity, and some clients are struggling to afford the premium for full replacement value. Other clients are unlikely to rebuild their property to the same size and scale as their existing one. 

Did you know that DUAL have the ability to offer a Replacement Value cover, but at a reduced 'Specified Replacement Value' (SRV)?

This differs from Indemnity Value coverage as this allows your client to nominate a  Specified Replacement Value (SRV) with the Replacement Value basis of settlement to apply to that amount. 

The fine print: 

If a claim to reinstate the property exceeds the SRV Sum Insured selected, then we reserve the right to discharge our liability by cash settlement. Our rating is scaled up depending on the proportion the SRV represents of the full RV (e.g. half the sum insured does not mean we charge only half the premium). 

This is a helpful option where full replacement insurance is simply unaffordable to the client, capacity is not fully available, or the client is unlikely to rebuild the same size property in the event of a total loss. 

If this may be of interest to your client, talk to your DUAL Underwriter about Specified Value (SRV) cover today.