A 90-year-old house has a market value of $150,000, while rebuilding it with its original plaster and millwork would cost $480,000. The suitable form is:
Explanation
The modified form exists for exactly this gap: replacing $480,000 of ornate construction on a house worth $150,000 would let the insured collect far more than the property is worth, so the form settles losses using common modern materials of like use. Writing the special form at full replacement cost would demand a $480,000 dwelling limit and the premium behind it. The unit-owners form covers a condominium interior, not a detached house.
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