Homeowners Policy (HO)Pregunta 298 de 474
A covered dwelling loss under the HO-8 modified form is settled on the basis of:
a.repair cost using common construction materials
b.the original purchase price plus improvements
c.full replacement cost with no depreciation taken off
d.the home's market value on the day of the loss
Explicación
The modified form exists for an older home whose replacement cost far exceeds its market value, and it pays the cost to repair or replace using common construction materials and methods rather than reproducing ornate original work. The full-replacement-cost answer describes the dwelling settlement on an HO-3, which is exactly what the modified form is designed to avoid.
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