In the event of a loss, what is assessed using the Pair and Set method?

The Pair and Set method is utilized to determine the value of a pair or a set of items when a loss occurs. This assessment focuses on the value of the items prior to the loss. The method acknowledges that if one item in a pair or set is damaged or destroyed, the entire value of that pair or set can be affected because they may be perceived as a single entity or unit.

In considering the value before the loss, insurance professionals evaluate what the whole pair or set was worth before the damage occurred, rather than just the remaining items or any depreciated value. This approach ensures that the insured can recover the full value that reflects the utility and worth of the complete collection, which is particularly important for items that are complementary or that are typically used together.

Understanding this method highlights its purpose in insurance claims to fairly compensate the insured for a total loss, ensuring that they are not left at a disadvantage due to the loss of an integrated set of items.