To collect full replacement cost on a partial loss to the dwelling under DP-2 or DP-3, the insured must carry insurance equal to at least what percentage of the replacement value?
a.100%
b.50%
c.80%
d.65%
Explanation
The standard ISO replacement cost condition requires the insured to carry coverage of at least 80% of the dwelling's full replacement value at the time of loss. If the insured carries less than 80%, the insurer pays the larger of ACV or a proportionate share of the loss. Carrying 100% guarantees full payment but the threshold for the replacement cost benefit is 80%.
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