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Posted by tonyb on April 01, 2002 at 06:08:21:
In Reply to: Does Replacement Cost Include Demolition? posted by Howard Jones on March 25, 2002 at 13:15:07:
Demolition/Debris removal is commonly part of an insurance policy, but not commonly an addition to the policy limit relating to the building coverage. However, Demolition/Debris removal is sometimes sold as an additional amount of insurance added to a policy. Replacement cost coverage merely sets a manner for payment of the loss if the policyholder meets the requirements, up to the amount of the policy limit, rather than Actual Cash Value. If the insurance company determines that you carried too little insurance and attempts to impose something less than full cost of replacement (in any case no more than up to the policy limit) you may want to shop for a low replacement cost estimate for the building, much the same as insurance companies shop for repair estimates. You may locate a licensed building contractor who will establish that your insurance was adequate when compared to that contractor's replacement estimate. A policyholder can waive the Replacement Cost provisions in favor of an Actual Cash Value settlement by giving written notice.
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