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Frequent Contributor
Posts: 103
Registered: ‎22-08-2016

What is the difference between reinstatement value basis and indemnity basis?

What is the difference between reinstatement value basis and indemnity basis?

1 REPLY 1
Frequent Contributor
Posts: 97
Registered: ‎22-08-2016

Re: What is the difference between reinstatement value basis and indemnity basis?

Reinstatement means that the insurer will  pay the cost of reinstatement to reinstate the property which is equal to but not better than the property damaged or lost. Indemnity means the insurer will deduct depreciation from cost of reinstatement to arrive at amount of payable claim.