What is the primary purpose of the Pair and Set method?

The primary purpose of the Pair and Set method is to assess the value of a property before a loss occurs, taking into account what remains after the incident. This methodology is particularly relevant in property insurance claims where items within a set or pair, such as a matching set of dining chairs or a pair of expensive earrings, may not have the same value individually as they do as a complete set.

When applying this method, the insurer will evaluate the whole set to determine its total pre-loss value and then subtract the value of what remains post-loss. This approach helps ensure that compensation reflects the true value of the item in its entirety rather than the diminished value of its individual components, thus providing fair compensation to the policyholder. This method is essential for maintaining the integrity of claims regarding items that derive value significantly from being part of a cohesive whole.