Reinstatement of insured property after a loss

Copyright © 2025 LexisNexis
Produced in partnership with Alexander Rosenfield of Fenchurch Law and Ayobami Babatunde of Fenchurch Law
Practice notes

Reinstatement of insured property after a loss

Copyright © 2025 LexisNexis

Produced in partnership with Alexander Rosenfield of Fenchurch Law and Ayobami Babatunde of Fenchurch Law

Practice notes
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What is Reinstatement?

Reinstatement is the repair or replacement of property so that it is in the same condition or a materially equivalent condition to that which it was in prior to the loss occurring. The wording of reinstatement clauses, however, varies from Policy to policy with very different Outcomes for the policyholder.

For example, depending on the precise wording, the policyholder may or may not be entitled to a cash Settlement, may or may not be required to rebuild, and may or may not have to rebuild on the same site. Also, many policies give the insurer the option to reinstate.

Who does it?

As might be expected, more often than not the policyholder reinstates. Many policies, however, give the insurer the option to reinstate at its election. Why might an insurer choose to do so?

There are several reasons why an insurer might elect to reinstate, rather than have the policyholder reinstate or pay them an amount equivalent to the cost of reinstatement.

Alexander Rosenfield
Alexander Rosenfield

Associate Partner, Fenchurch Law

Alex is a Senior Associate at Fenchurch Law. He specialises in insurance coverage disputes for policyholders with a focus towards property damage claims. 
 
Prior to joining Fenchurch Law in 2017, Alex worked at Elborne Mitchell in the heart of the London insurance market. He trained with BPS Law LLP in Manchester, specialising in policyholder coverage work.
 
Alex is passionate about delivering Fenchurch Law’s mission statement of levelling the playing field for policyholders and has been quoted in several of the country’s leading insurance publications and newspapers on policyholder coverage issues. Those include an article for the Guardian which highlighted the challenges of complying with ‘Unoccupied Buildings’ conditions at the height of the COVID-19 Pandemic.
 
Alex graduated from the University of Birmingham in 2009, before completing the LPC at the College of Law in 2010.
 
Away from his practice, Alex is a member of the Society of Construction Law and the British Insurance Law Association. He also sits on BILA’s Young Professionals’ Committee as Media Officer.

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Ayobami Babatunde
Ayobami Babatunde

Associate Solicitor, Fenchurch Law

I am an Associate Solicitor at Fenchurch Law.

I completed my training contract at DAC Beachcroft LLP, joining Fenchurch Law in September 2023.

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Jurisdiction(s):
United Kingdom
Key definition:
Reinstatement definition
What does Reinstatement mean?

Following the lapse of a policy, ordinarily through failure to pay the due premiums, some policies allow the ability to reinstate the cover.

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