The recoverable depreciation held back under a replacement cost policy becomes payable once the insured has:
Explanation
Replacement cost settlement is conditioned on actually repairing or replacing the damaged property, so until the work is done the insurer owes only actual cash value. Cashing the actual cash value draft settles nothing further by itself, and a proof of loss documents the claim rather than releasing the holdback. An insured who takes the money and never rebuilds keeps the actual cash value and loses the depreciation.
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