1.3  Sum Insured

At all times an amount not less than the total reinstatement or replacement value of the Insured Property136 plus provision to include other Principal Extensions as appropriate. (escalated periodically as appropriate)137




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136  For certain projects, where a total loss is inconceivable (e.g. road and rail) the sum insured could correspond to the Estimated Maximum Loss, rather than the full reinstatement value.

137  It will be important for the parties to agree an appropriate method of escalation.