Opinion ID: 6349802
Heading Depth: 2
Heading Rank: 2

Heading: Relevant Policy Provisions

Text: The Building and Personal Property Coverage Form, the basic coverage form in the Policy, provides: 3. Replacement Cost . . . c. You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional Coverage provides if you notify us of your intent to do so within 180 days after the loss or damage. d. We will not pay on a replacement cost basis for any loss or damage: (1) Until the lost or damage property is actually repaired or replaced; and (2) Unless the repair or replacement is made as soon as reasonably possible after the loss or damage. - 5 - The Massachusetts Changes Endorsement, required under Mass. Gen. Laws ch. 175, § 47, clause 17, amends the Replacement Cost provision: D. Paragraph 3.d. of the Replacement Cost Optional Coverage is replaced by the following: d. We will not pay on a replacement cost basis for any loss or damage: (1) Until the lost or damaged property is actually repaired or replaced: (a) On the described premises; or (b) At some other location in the Commonwealth of Massachusetts; and (2) Unless the repairs or replacement are made within a reasonable time, but no more than 2 years after the loss or damage. The Advantage Property Endorsement, which includes the provision covering the code upgrade coverage in the amount of $25,000, provides: (b) We will not pay for the increased cost of construction under this coverage: (i) Until the property is actually repaired or replaced, at the same or another premises; and (ii) Unless the repairs or replacement is made as soon as reasonably possible after the loss or damage, not to exceed two years.