When goods are damaged during transit, the loss isn’t always about replacement — sometimes it’s about repair. This is where the Cost of Reconditioning comes into play.
In marine insurance, cost of reconditioning refers to the expenses incurred in restoring damaged cargo back to its original condition.
These costs are crucial because:
• They determine how much compensation is paid under an insurance policy.
• They can significantly impact the final claim settlement.
• Cargo owners may face partial or full reconditioning charges depending on the situation.
For example, if your shipment arrives with water damage, insurers might cover the cost of drying, cleaning, or repairing goods instead of replacing them entirely. While this reduces the overall claim amount, it ensures cargo is usable again.
By understanding the Cost of Reconditioning, businesses can better prepare for the financial implications of cargo damage and make smarter choices in marine insurance coverage.
👉 Watch this video to learn how reconditioning affects claim settlements, shipping costs, and why it’s essential for every exporter, importer, and logistics professional.
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