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Document Details : Title: A Model to Evaluate the Rebuilding Costs of Dwelling Author(s): CORLIER, Freddy , INGENBLEEK, Jean-François , LEMAIRE, Jean Journal: ASTIN Bulletin Volume: 16 Issue: 1 Date: April 1986 Pages: 45-62 DOI: 10.2143/AST.16.1.2015016 Abstract : Under-insurance is one of the scourges of homeowner Insurance: when it is established after a claim that the rebuilding cost of a dwelling has been under- estimated by the policyholder, the proportional rule applies in the sense that the indemnity is reduced in proportion of the under-insurance. To avoid this dramatic problem, prejudicial to all parties concerned, a Belgian company has in 1983 marketed a model to evaluate rebuilding costs: if the pohcyholder fills in correctly a two-page form, the company forgoes the application of the proportional rule. The construction of this model is explained; then, it is shown how a statistical study sponsored by the Professional Union of Insurance Companies allowed the model to improve. |
