The insured owns an expensive rare painting. He has it appraised by an art dealer and has it insured for $50,000 under a personal articles floater. There is a market decline for this item. It is destroyed in a fire at his office. The company offers him $40,000, the current market value. How will the loss be handled?
The insured owns an expensive rare painting. He has it appraised by an art dealer and has it insured for $50,000 under a personal articles floater. There is a market decline for this item. It is destroyed in a fire at his office. The company offers him $40,000, the current market value. How will the loss be handled?
The item is not covered because it was away from the insured's residence at the time of the loss.
The insurance company will cover the item for the full $50,000 amount.
The insurance company is correct in offering fair market value at the time of the loss.
The insurance company will ask for a reevaluation of the item based on records and documentation of the price paid, the current market value and the appraised value.
Answer: The insurance company will cover the item for the full $50,000 amount.
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