I have been told that I need to notify my insurance company that I will be claiming Replacement Cost within 180 days after the loss. What is this?
In the “Loss Settlement” section of the standard ISO HO-3 policy used by many insurers, it states:
“You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss to buildings on an actual cash value basis. You may then make claim for any additional liability according to the provisions of this Condition C. Loss Settlement, provided you notify us of your intent to do so within 180 days after the date of loss.”
If this clause is in your policy, you should write to your insurer notifying them that you intend to make claim for replacement cost. If you don’t know if this clause is in your policy, it does not hurt to send it to them anyway if you are planning a replacement cost settlement.
Not all insurers use this ISO HO-3 form, so you may not find this wording in your specific policy. It is standard operating procedure for public adjusters to assume this clause is found in every policy to protect the interests of their client.