5.8 Loss Settlement Copy

The insurer’s limit of liability and payment for covered losses will not exceed the smallest of the following:

• The actual cash value at the time of loss determined with proper deduction for depreciation;
• The cost to repair or replace the damaged property with material of like kind and quality, with proper deduction for depreciation; or
• The specified limit of liability of the policy

Salvage Rights – If the insurer notifies the insured that they will pay the claim or part of the claim, the notice must also state whether they will or will not take all or any part of the damaged property. The insurer must bear the expense of their salvage rights.

Appraisal – If the insured and insurer fail to agree on the actual cash value, the amount of loss or cost of repair or replacement either can make a written demand for appraisal. Each will then select a competent, independent appraiser and notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, the insured or insurer may request that the choice be made by the judge of a district court of a judicial district where the loss occurred.

The two appraisers will then set the amount of loss, stating separately the actual cash value and loss to each item

Loss Payment- If the insurer notifies the insured that they will pay the claim, or part of the claim, they must make payment not later than the 5th business day after they notify the insured. If payment of the claim or part of the claim requires the performance of an act by the insured, the insurer must make payment not later than the 5th business day after the date the insured performs the act.

Catastrophe Claims –  If a claim results from a weather-related catastrophe or a major natural disaster, each claim handling deadline shown under the Duties After Loss and Loss Payment provisions is extended for an additional 15 days.

Cancellation – The insured may cancel the policy at any time by notifying the Insurer of the date cancellation is to take effect. The insurer will send the Insured any refund due when the policy is returned to the insurer. The insurer may cancel this policy only for the reasons stated in this condition by giving the insured notice in writing of the date cancellation takes effect.
If the policy has been in effect for less than 90 days and is not a renewal policy, the insurer may cancel

The effective date of cancellation cannot be before:

• The 10th day after the insurer mails notice if the insurer cancels for non-payment of premium.
• The 30th day after the insurer mails notice if the Insurer cancels for any other reason.

If this policy has been in effect 90 days or more, the insurer may not cancel this policy unless:

• The insured does not pay the premium or any portion of the premium when due.
• The State Board of Insurance determines that continuation of the policy would violate’ the Texas Insurance Code or any other laws governing the business of insurance in Texas.
• The insured submits a fraudulent claim.
• There is an increase in hazard covered by the policy that is within the insured’s control and that would produce an increase in the premium/rate of the policy.