Like Kind And Quality

Updated: 09 June 2023

What Does Like Kind And Quality Mean?

Like kind and quality refers to a condition in property insurance policies that states that the insurer would cover the cost of repairing or replacing a covered loss with property similar to the original in composition and quality.

Insuranceopedia Explains Like Kind And Quality

In property insurance, many policies include a “like kind and quality” clause. This benefits the policyholder as they can expect a covered loss would return the damaged property to an equivalent or very similar state to before the loss occurred.

For example, a car insurance policyholder buys a new car and gets into an auto accident. As the policy covers the loss, the insurer agrees to pay for repairs. In this case, the latter would be obligated by law to pay for repairs using products and parts from the original manufacturer, and where not possible, materials comparable to the original.

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