| It depends. If your policy says under the Loss Condition section you have the right to "repair or replace" the damaged property, that does not mean you have to repair the damage to get replacement cost coverage. You can buy another house, build a new house, etc. and qualify at least here in Washington State.
For example, let's day the damages were $200,000, they paid you $100,000 as Actual Cash Value, that means there is/was $100,000 in replacement cost benefits available to you. You then purchased another, existing house and paid $300,000 for it. Of that amount, $50,000 was the lot value and $10,000 the value of the site improvements. Therefore what you paid for the new house was $300,000 minus $50,000, minus $10,000 or $240,000. Since you spent or are obligated by Promissory Note, you "replaced the damaged property" by purchasing another property. Since you spend $240,000 replacing damged property, you spent more then the $200,000 replacement cost and qualify for the $100,000 in replacment cost benefits.
Note: I am not familiar with Florida HO policies or law in your State, so check out both. | 
02-07-2005, 06:20 AM
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