Settlement options

Settlement options describe the recovery method to be used prior to the loss and is typically on either a replacement cost or actual cash value basis.  However, an agreed or stated amount can be offered to provide a predetermined settlement amount.  If depreciation is a concern, it is generally recommended that a settlement option which does not drastically depreciate the described items.  

By William F. Schaake, CIC, CRM © 2011-2012 All rights reserved