Replacement cost value insurance question

[Joanlee]

What is the name of your state (only U.S. law)? Texas
I need a little help understanding. I have a replacement cost policy but was told by agent the following: Your policy does provide Replacement Cost Coverage, however at this time we only have an estimated cost of replacement.
The policy requires the initial Actual Cash Value payment be issued.
Can I insist/demand they pay the replacement cost since this is the policy I have ?? Help please

 

[adjusterjack]

Did it occur to you to take out your policy and read the Loss Settlement provisions to verify what the adjuster is telling you?

The typical homeowners policy has the same provisions so I'm going to quote you the provisions from my sample HO-3 with regard to dwelling and other buildings coverage:

We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. Once actual repair or replacement is complete, we will settle the loss as noted in 2.a. and b. above.
However, if the cost to repair or replace the damage is both:
(1) Less than 5% of the amount of insurance in this policy on the building; and
(2) Less than $2,500;
we will settle the loss as noted in 2.a. and b. above whether or not actual repair or re-placement is complete.

On the HO-3, personal property is only covered for actual cash value unless you purchased optional replacement cost coverage or have it built into the policy. Either way, it's the same thing:

If the cost to repair or replace the property described in A. above is more than $500, we will pay no more than the actual cash value for the loss until the actual repair or replacement is complete.

Your policy may have different terms but the basic concept is that you get paid the ACV up front and you get the balance (up to what you spend for like kind and quality - not up to what you estimated) when you have completed repairs or replacements and submit the receipts to the insurance company.