Any VAT recoverable element will not be paid. By default, if you indicate that you can recover VAT, the default recovery rate is set to 35% (subject to possible legal change of minimal VAT recovery rate). We will maximum deduct up to 50% of VAT depending on your VAT regime.
The claim pay-out we shall pay for a covered total loss is 10,000 EUR excluding VAT. Let’s assume You can recover 35% of VAT. The non-recovery part is thus 65%. We will pay you: 10,000 EUR + 65% * 21% * 10,000 EUR = 11,365 EUR.