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 Posted: Mon Jan 26, 2009 11:31 am Post subject: difference in replacement and reinstatement clause in the po |
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| I would like to understand difference in replacement and reinstatement clause in the insurance policy and its impact during claim settlement |
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sandeepkunte
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Joined: 26 Jan 2009
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| Posted: Mon Jan 26, 2009 12:38 pm Post subject: |
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Hi dear..
I guess the replacement clause states till what worth the loss would be replaced by your coverage. On the other hand, reinstatement of coverage is mostly about reactivation of the coverage benefits following a stoppage/termination due to non-payment.
Roddick |
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roddick
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| Posted: Mon Jan 26, 2009 1:49 pm Post subject: |
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sandeepkunte, kind of sounds like two different topics you've asked about you can have a policy that gives you replacement coverage, or an endorcement that does same, but reinstatement would have to do with the policys status, ie, you were less than ten days late when you made your premium payment so your police was reinstated without a lapse in coverage. please be more specific re: your question and i'm sure we can help you out.
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Lori
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| Posted: Tue Jan 27, 2009 6:44 am Post subject: |
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Reinstatement is when you ask the insurer to put a lapsed policy back into effect with a promise to pay the premium for the entire period. It, however, would depend upon the insurance company's discretion whether or not to allow reinstatement of the plan. As far I know, after a certain period of time even reinstating a plan doesn't remain a feasible option to the policy holder.
Replacement clause of a policy would guarantee that the insurer would replace the damaged object instead of paying the actual cash value for it.
I agree with Lori you have combined two different topics into one. |
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Juanita
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| Posted: Tue Jan 27, 2009 12:22 pm Post subject: |
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re-reinstatement as opposed to having to re-issue a policy i think this is both state dependent and carrier...meaning the carrier can be more lenient, in my state it's ten days (auto policys) you have up to ten day after the expiration to pay that premium for it to reinstate it, after that, it lapses and a new policy would have to be issued...
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Lori
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