Re: Contents Insurance valuation

In message <pSDLf.25751$wl.21003@xxxxxxxxxxxxxxxxxxxxxxxxxx>, Ronald Raygun <no.spam@xxxxxxxxxxxxxxxxxxxxx> writes
john boyle wrote:

In message <NECLf.25731$wl.3945@xxxxxxxxxxxxxxxxxxxxxxxxxx>, Ronald
Raygun <no.spam@xxxxxxxxxxxxxxxxxxxxx> writes
john boyle wrote:
In message <1140779167.283294.79660@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,
alfi286@xxxxxxx writes
If the house burnt down would I
get this full amount as payment for the stuff I lost?

If the replacement costs exceed £12500 then what you would get =

12500/actual total replacement cost

I think you mean (£12500)^2/(replacement cost).

No. If the total replacement cost was £25,000 then he would get half his
claim.

Indeed, but in the stated scenario of the house burning down, all his
contents would be destroyed and so his claim would be for everything.

Yes, but assuming 'new goods replace old' cover he would only get half the amount claimed. In fact he would only get half the amount claimed for ANY claim, irrespective of the total amount claimed.

My point was that you gave a ratio, not an amount.

Yes, it is correct. It will always be amount paid out by insco=(amount of claim*amount of cover)/(actual total value of replacing everything in one go)
You gave only
Limit/(Replacement Value of Everything) whereas it should have been
(Size of Claim)*Limit/(Replacement Value of Everything).


Yes I didnt make it clear. BTW that raising to the power of 2 bit of yours confused me as well!
--
John Boyle
.

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