{"id":896821,"date":"2019-12-10T15:59:22","date_gmt":"2019-12-10T22:59:22","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=896821"},"modified":"2019-12-10T15:59:29","modified_gmt":"2019-12-10T22:59:29","slug":"can-a-policyholder-profit-from-a-loss","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/","title":{"rendered":"Can A Policyholder Profit From A Loss?"},"content":{"rendered":"\n

Chip Merlin | Property Insurance Coverage Law Blog<\/a> | December 3, 2019<\/p>\n\n\n\n

Some of the more interesting discussions about property insurance losses which I have read lately come from Steve Patrick\u2019s \u201cLevel The Playing Field\u201d Facebook Group. Recently, Leland Coontz wrote the following:<\/p>\n\n\n\n

I\u2019ve been triggered again. Someone mentioned on Facebook that \u2018The insured is not allowed to profit from their loss.\u2019 Show me your law license and I might respect your wrong opinion. But it would still be wrong.<\/p><\/blockquote>\n\n\n\n

His post triggered over 130 comments with very different opinions.<\/p>\n\n\n\n

I wrote the following comment:<\/p>\n\n\n\n

LeLand\u2014you are right. Some products, like replacement coverage, had to be legislated for allowance because the policyholder was in a better position after the loss than before. The Valued Policy Laws raised huge debates in the 19th Century for the same reason. People recite principles without thinking that they are not always applicable and have exceptions.<\/p><\/blockquote>\n\n\n\n

Of course, a number of people refused to believe what I wrote and said that the principle of indemnification prevented people from profiting from their loss. So, I had to provide an example\u2014using my old shoes example which I often do during speeches and presentations where I literally show off my old shoes:<\/p>\n\n\n\n

So how do you explain that I am not profiting when my almost valueless old and worn out, almost unusable leather shoes with holes in the bottoms, when they get burnt up, I get to go buy brand new ones for $200 and the insurance company pays me for them? I can play this game with you all day long showing how an insured profits from replacement cost coverage and even give you extra expense examples in commercial situations. Why don\u2019t you just accept that in some situations, the insurance product is sold that intends to put the insured in a better position and not back to how he was? Go read some of Chris Boggs discussions of this topic which he presents to the Big I\u2014even insurance agents get taught that replacement cost coverage puts the insured in a better position than before and is an exception to traditional notions of indemnity. Cheers and good luck. Not trying to start a fight, but it is pretty obvious that insureds can profit from a loss as Leland points out.<\/p><\/blockquote>\n\n\n\n

For those interested, here is a presentation Chris Boggs made<\/a> to the \u201cBig I\u201d regarding valuation.<\/p>\n\n\n\n

And do not get me wrong, most discussions of \u201cindemnity\u201d as an insurance principle recite:<\/p>\n\n\n\n

Indemnity<\/p>

The principle of indemnity ensures that an insurance contract protects you from and compensates you for any damage, loss, or injury. The purpose of an insurance contract is to make you \u2018whole\u2019 in the event of a loss, not to allow you to make a profit. Thus, the amount of your compensation for a loss is directly related to the amount of loss that you actually suffered.<\/p><\/blockquote>\n\n\n\n

I am just saying that the modern insurance product can be purchased which totally blows this old and often recited \u201cprinciple\u201d away. Some people freak out with change, some believed the earth was flat and threw scientists in jail for saying otherwise and the rest of us study, learn, and comment on facts. Those old shoes don\u2019t lie.<\/p>\n","protected":false},"excerpt":{"rendered":"

Chip Merlin | Property Insurance Coverage Law Blog | December 3, 2019 Some of the more interesting discussions about property insurance losses which I have read lately come from Steve Patrick\u2019s \u201cLevel The Playing Field\u201d Facebook Group. Recently, Leland Coontz wrote the following: I\u2019ve been triggered again. Someone mentioned on Facebook that \u2018The insured is… Continue reading Can A Policyholder Profit From A Loss?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9914],"tags":[],"class_list":["post-896821","post","type-post","status-publish","format-standard","hentry","category-insurance-coverage","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nCan A Policyholder Profit From A Loss? - Advise & Consult, Inc.<\/title>\n<meta name=\"description\" content=\"I\u2019ve been triggered again. Someone mentioned on Facebook that \u2018The policyholder is not allowed to profit from their loss.\u2019\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can A Policyholder Profit From A Loss? - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"I\u2019ve been triggered again. Someone mentioned on Facebook that \u2018The policyholder is not allowed to profit from their loss.\u2019\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise & Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-12-10T22:59:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-12-10T22:59:29+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Can A Policyholder Profit From A Loss?\",\"datePublished\":\"2019-12-10T22:59:22+00:00\",\"dateModified\":\"2019-12-10T22:59:29+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/\"},\"wordCount\":550,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"articleSection\":[\"Insurance Coverage\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/\",\"name\":\"Can A Policyholder Profit From A Loss? - Advise & Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2019-12-10T22:59:22+00:00\",\"dateModified\":\"2019-12-10T22:59:29+00:00\",\"description\":\"I\u2019ve been triggered again. Someone mentioned on Facebook that \u2018The policyholder is not allowed to profit from their loss.\u2019\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise & Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Can A Policyholder Profit From A Loss? - Advise & Consult, Inc.","description":"I\u2019ve been triggered again. Someone mentioned on Facebook that \u2018The policyholder is not allowed to profit from their loss.\u2019","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/","og_locale":"en_US","og_type":"article","og_title":"Can A Policyholder Profit From A Loss? - Advise & Consult, Inc.","og_description":"I\u2019ve been triggered again. Someone mentioned on Facebook that \u2018The policyholder is not allowed to profit from their loss.\u2019","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/","og_site_name":"Advise & Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2019-12-10T22:59:22+00:00","article_modified_time":"2019-12-10T22:59:29+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Can A Policyholder Profit From A Loss?","datePublished":"2019-12-10T22:59:22+00:00","dateModified":"2019-12-10T22:59:29+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/"},"wordCount":550,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"articleSection":["Insurance Coverage"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/","name":"Can A Policyholder Profit From A Loss? - Advise & Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2019-12-10T22:59:22+00:00","dateModified":"2019-12-10T22:59:29+00:00","description":"I\u2019ve been triggered again. Someone mentioned on Facebook that \u2018The policyholder is not allowed to profit from their loss.\u2019","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/can-a-policyholder-profit-from-a-loss\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise & Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3LiR","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/896821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=896821"}],"version-history":[{"count":1,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/896821\/revisions"}],"predecessor-version":[{"id":896822,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/896821\/revisions\/896822"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=896821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=896821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=896821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}