Insureds generally carry functional replacement cost insurance
when they want lower limits and the materials or property can be replaced with cheaper materials.
The cost to replace the floor with Hoosier Hardwood Floors is $56,385, but with replacement cost insurance
, the corporation will only pay the $5,000 deductible.
Fannie Mae guidelines require replacement cost insurance
and assign the responsibility to the lender to ensure that the homeowner obtains insurance in compliance with Fannie Mae guidelines.
This webinar will be hosted by Kathy Taub, member, Arent Fox, who specializes in structuring recently testified as an expert witness on construction contracts in the replacement cost insurance
proceedings for the World Trade Center complex.
If policyholders have replacement cost insurance
, they may receive advance payments for the depredated value for furniture, televisions, clothing, and other household items.
The gap in standard coverage underscores the fact that replacement cost insurance
merely replaces the building with the same or similar material.
Snellen involved a fire-damaged home that was covered by replacement cost insurance
Replacement cost insurance
is defined as the cost to replace and/or repair the building with materials of like kind and quality following a loss.