Today in #YouCanFindAPersonWhoKnowsAnythingOnTheFedi please tell me about the nuances of insurance liability.
My understanding is...
The insurance company covers damage related to the event listed on the claim only. Any pre-existing damage is the responsibility of the owner. Therefore, if event related damage cannot be repaired due to preexisting damage (eg glass can't be replaced due to a rotted window frame), then insurance pays out for only event related damage (eg they pay for the cost of glass replacement only, directly to the owner in cash).
My neighbour's understanding is...
They insured their window which was in working order. After the storm it is not in working order. Therefore it is the responsibility of the insurance company to reinstate a window in working order. It is true the window has preexisting damage that prevents the glass being replaced in isolation, however this preexisting did not prevent the window being in working order before the storm and therefore is not relevant.
Is either of us correct? Do you have the correct answer?
Thanks!