ADH 15.04a 31 How we settle claims • We may repair, reinstate or replace the lost or damaged property. If we cannot replace or repair the property we may pay for the loss or damage in cash. Where we can offer repair or replacement through a preferred supplier, but we agree to pay a cash settlement, then payment will not exceed the amount we would have paid the preferred supplier. If no equivalent replacement is available then we will pay the full replacement cost of the item with no discount applied. • We will not pay more than the sum insured for a claim. The amount we pay will also depend on any limit shown in the policy . Your cover limits will not be reduced by any claim. • Where an excess applies, this will be taken off the amount of your claim. • We will not pay for loss of value to any item or buildings resulting from repair or replacement following a claim. We may appoint an approved supplier to act on our behalf to validate your claim. They are authorised to arrange a quotation, a repair or a replacement. Contents and Business equipment • We will settle claims for loss or damage to items which are beyond economic repair on the basis of cost as new as long as: - the contents and business equipment have been maintained in good repair • We will take off an amount for wear and tear in any claim for: - clothing, towels, bed or table linen. Buildings • We will settle claims for loss or damage to the buildings without taking off an amount for wear and tear as long as: - the buildings have been maintained in good repair. • We will pay for the reasonable cost of work carried out in repairing or replacing the damaged part of the buildings and agreed fees and related costs. • If the repair or replacement is not carried out, we will pay the decrease in market value of your buildings due to the damage but not more than it would have cost us to repair the damage to your buildings if the repair had been carried out without delay. • At our option we may arrange for specialist i nvestigations to be carried out.