Settlement Options, Property And Casualty Insurance

Definition of "Settlement options, property and casualty insurance"

S. Jay Siegall, Real Estate Agent SUN Realty USA

Methods for payment of the value of a policy. An insurance company can select one of three options in settlement of a loss: make a cash payment; take possession of damaged or destroyed property and replace it with property of like kind and quality; or repair the property so that it is restored to its structural condition prior to the loss, and return the repaired property to the insured. Usually insurance companies settle losses by a cash payment to the insured.