An alternative term for accommodation line.
Tag: UK
Obsolete buildings clause
Apply a form of reinstatement insurance to buildings over 50 years old that cannot be rebuilt in a similar manner following a claim. The insurer agrees that if there is a significant loss, they will replace the ‘old’ with a new building or purchase an alternative building as a replacement. The sum insured should reflect this cost, and partial losses can be handled on a reinstatement or indemnity basis.
Obsolete parts clause
Clause applied by motor insurers when the subject-matter insured is a car no longer in production. The clause limits the liability of the own damage insurer for the cost of replacing any unobtainable part to the maker’s last list price plus the current cost of fitting.