Reinstatement means the restoring of the insured’s property to the condition it was in, before damage or loss occurred. When dealing with items such as machinery and other contents, this type of indemnity is probably sufficient (provided other similar machinery or contents can be found). In the case of buildings, however, the insured may incur additional expense if choosing Reinstatement, when rebuilding because of changing building requirements (e.g. safety equipment, access for disabled people etc.).
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