Opinion ID: 1560116
Heading Depth: 1
Heading Rank: 12

Heading: Replacement Cost Coverage Defined

Text: Replacement Cost means the cost, at the time of loss, of a new item identical to the one damaged, destroyed or stolen. ... SPECIAL FORM  HOMEOWNERS POLICY  Read Your Policy Carefully  This policy is a legal contract between you, the policyholder, and us, the insurer.... This contract consists of the Declarations page, the policy, and any applicable endorsements. ... The policy itself sets forth, in detail, the rights and obligations of both you and your insurance company. IT IS THEREFORE IMPORTANT THAT YOU READ YOUR POLICY. [25] ... AGREEMENT [p. 1] In return for payment of premium and subject to all terms of this policy, we will provide the insurance described. DEFINITIONS ... 4. Insured location means: a. the residence premises; b. the part of other premises, other structures and grounds used by you as a residence; ... 6. [ P]roperty damage means physical damage to, or destruction of tangible property, including loss of use of this property. ... SECTION I  PROPERTY COVERAGES [p. 2] COVERAGE A  Dwelling We cover: 1. the dwelling on the residence premises shown in the Declarations, including structures attached to the dwelling.... ... COVERAGE B  Other Structures We cover other structures on the residence premises set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. ... The limit of liability for this coverage will not be more than 10% of the limit of liability that applies to Coverage A. [26] ... COVERAGE C  Personal Property ... COVERAGE D  Loss of Use ... 1. Additional Living Expenses. If a loss covered under Section  I makes that part of the residence premises where you reside not fit to live in, we cover the necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living. ... SECTION I  PERILS INSURED AGAINST [p. 6] COVERAGE A  Dwelling and COVERAGE B  Other Structures We insure against risks of direct, physical loss to property described in Coverages A and B; however, we do not insure against loss: ... 4. excluded under SECTION I  EXCLUSIONS. ... COVERAGE C  Personal Property We insure for direct physical loss to the property described in Coverage C caused by peril listed below unless the loss is excluded in SECTION I  EXCLUSIONS. 1. Fire or lightning. 2. Windstorm or hail. This peril does not include loss to the property contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening. ... SECTION I  EXCLUSIONS [p. 8] 1. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss. ... c. Water damage, meaning: (1) flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind .... ... 2. We do not insure against loss consisting of any of the following. Nor do we insure for loss that results when one or more of the following combines with other causes, events or conditions that are also excluded or excepted in this policy. However, any loss that ensues from the following, that is not otherwise excluded or excepted is covered: ... SECTION I  CONDITIONS [p. 9] 1. Insurable Interest and Limit of Liability .... [W]e will not be liable in any one loss: a. to the insured for more than the amount of the insured's interest at the time of loss .... ... 3. Loss Settlement. Covered property losses are settled as follows: ... It is our option to: (a) pay you the actual cash value; or ... (c) pay you the cost to repair or restore the property to the condition it was in just before the loss. (Emphasis added.)