Insurer’s option

Material damage insurers reserve the right to provide the indemnity by monetary payment, repair, reinstatement or replacement. In the absence of an option the insured could demand a cash payment. The insurer loses the option if he fails to exercise his alternative rights in a reasonable period of time. An insurer who has indicated his preference may be estopped from choosing an alternative course.

Leave a Reply

Your email address will not be published. Required fields are marked *