The typical homeowner's property insurance policy 'loss settlement' provision provides that in the event of a covered loss to a dwelling, the insurer will pay the cost to repair or to replace without deduction for depreciation,
Replacement Cost Insurance and the Issue of Matching
The typical homeowner's property insurance policy 'loss settlement' provision provides that in the event of a covered loss to a dwelling, the insurer will pay the cost to repair or to replace without deduction for depreciation, but not exceeding the lesser of the following three amounts: (a) the limit of liability applicable to the dwelling; (b) the replacement cost of that part of the dwelling damaged (for like construction and use, or equivalent construction and use, or with comparable material and quality for the same use, or using materials of like kind and quality) on the same premises; or (c) the necessary amount actually spent to repair or to replace the damaged dwelling.
This premium content is locked for LawJournalNewsletters subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN LawJournalNewsletters
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.






