Reasons why recent contract prices may not be appropriate in determining replacement costs for property damage insurance
Does contract price affect replacement costs for commercial assets? How using recent contract prices to determine replacement costs affect you?
In this whitepaper by John Foord, we delve into the different aspects of recent contract prices, namely:
- Do your insured “replacement as new” sums reflect actual project prices?
- Are the current contract prices reflective of all non-insurable assets and are these to be included?
- Does the original asset price accurately reflect your actual commercial investment?
- Do infrastructure changes around the asset location affect current asset replacement costs?
- Does the shift in the global or regional market affect access to products or services and are these reflected?
- Does the impact of economic and labor changes impact current contract price?
- Are there other issues that may impact your current contract price