Many homeowner property insurance policies (and property insurance policies in general) are replacement cost policies. This means the policy covers loss to property without factoring in the depreciation of that property. It is important to understand that just because the property has been damaged does not mandate that the property must be replaced (under a replacement cost policy). Rather, an insurer can reduce its liability under the policy to the reasonable and necessary cost to repair the damaged property. See, e.g., Prepared Ins. Co. v. Gal, 2016 WL 5939749 (Fla. 4th DCA 2016) (expressing that replacement cost policy did not mandate that insurer replace damaged cabinets; insurer could reduce its liability under the policy to reasonable and necessary cost to repair the damaged cabinets). In pursuing a property insurance claim, make sure you appreciate what the property insurance policy covers and does not cover.
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