Common use of Replacement Cost Terms Clause in Contracts

Replacement Cost Terms. a. The Replacement Cost Terms apply only to buildings covered under Coverages A and B that have a permanent foundation and roof. They do not apply to: 1) mobile homes whether or not on a permanent foundation; 2) window air-conditioners; 3) awnings and canopies; 4) antennas; 5) appliances; 6) carpets; 7) window coverings; and 8) tenant's improvements b. In determining the replacement cost, do not include the cost of: 1) excavations; 2) brick, stone, or concrete foundations; 3) piers and other supports which are below the surface of the ground inside the foundation walls; and 4) underground flues, pipes, wiring, and drains. c. When the cost to repair or replace exceeds the lesser of $2,500 or five percent of the limit on the damaged building, we do not pay for more than the actual cash value of the loss until repair or replacement is completed. You may make a claim for the actual cash value amount of the loss before repairs are made. A claim for an additional amount payable under these terms must be made within six months of whichever is the latest: 1) the last date on which you received a payment for the actual cash value; or 2) the date of entry of a final order by a court declaring your right to full replacement cost. d. If the limit on the damaged building is less than 80 percent of its replacement cost at the time of loss, the larger of the following amounts is used in applying the Loss Settlement Terms: 1) the actual cash value at the time of the loss; or 2) that part of the replacement cost of the damaged part which our limit on the building bears to 80 percent of the full current replacement cost of the building. e. If the limit on the damaged building is at least 80 percent of its replacement cost at the time of loss, the smaller of the following amounts is used in applying the Loss Settlement Terms: 1) the cost to repair or replace the damage on the same premises using materials of like kind and quality; or 2) the amount spent to repair or replace the damage.

Replacement Cost Terms. a. The Replacement Cost Terms apply only to buildings covered under Coverages A and B that have a permanent foundation and roof. They do not apply to: 1) mobile homes whether or not on a permanent foundation; 2) window air-conditioners; 3) awnings and canopies; 4) antennas; 5) appliances; 6) carpets; 7) window coverings; and 8) tenant's improvements b. In determining the replacement cost, do not include the cost of: 1) excavations; 2) brick, stone, or concrete foundations; 3) piers and other supports which are below the surface of the ground inside the foundation walls; and 4) underground flues, pipes, wiring, and drains. c. When the cost to repair or replace exceeds the lesser of $2,500 or five percent of the limit on the damaged building, we do not pay for more than the actual cash value of the loss until repair or replacement is completed. You may make a claim for the actual cash value amount of the loss before repairs are made. A claim for an additional amount payable under these terms must be made within six months of whichever is 180 days after the latest: 1) the last date on which you received a payment for the actual cash value; or 2) the date of entry of a final order by a court declaring your right to full replacement costloss. d. If the limit on the damaged building is less than 80 percent of its replacement cost at the time of loss, the larger of the following amounts is used in applying the Loss Settlement Terms: 1) the actual cash value at the time of the loss; or 2) that part of the replacement cost of the damaged part which our limit on the building bears to 80 percent of the full current replacement cost of the building. e. If the limit on the damaged building is at least 80 percent of its replacement cost at the time of loss, the smaller of the following amounts is used in applying the Loss Settlement Terms: 1) the cost to repair or replace the damage on the same premises using materials of like kind and quality, to the extent practical; or 2) the amount spent to repair or replace the damage.