Common use of Basis of Settlement Clause in Contracts

Basis of Settlement. a. If within a reasonable time after the loss or damage you replace or repair the loss or damage to your unit with materials of similar quality, we will pay for the actual cost of repairs or replacement, whichever is the lesser, without deduction for depreciation; b. If the loss or damage is not replaced or repaired within a reasonable time, we will pay the actual cash value of the loss or damage at the time of the loss, but not more than the amount required to repair or replace. We will not pay for that portion of any assessment made necessary by a deductible clause in the insurance of the Condominium Corporation.