Definition of Guaranteed Replacement Cost Coverage
Guaranteed Replacement Cost Coverage means the cost to actually repair or replace the damaged improvements with construction of like kind and quality at the time immediately prior to the loss without deduction for depreciation or physical wear and tear. This cover- age shall be applicable only to a dwelling(s). This extension shall not apply to alterations and/or additions in excess of $10,000 unless reported in writing to the California Department of Veterans Affairs upon completion. If the improvements to your dwelling are damaged or destroyed by a named cause of loss, and the coverage limit shown in the annual report of the certificate limit is less than the cost of repairs, we will increase the coverage limit to equal the current replacement cost of the improvements to your dwelling subject to the following: Payment under this provision shall be limited to the amount necessarily and actually spent to repair or replace the damaged improvements.