Replacement Cost Claims after Death

May 14, 2012

We have a fire claim under the HO 00 06 04 91, Unit Owners Coverage form, with the replacement cost endorsement on personal property. Our insured, who was single, died in the fire. We are now working with the insured's daughter in settling the property claim, which is mostly for coverage C, personal property. We have a question regarding the replacement cost loss settlement provisions. Since our insured is deceased, she will not be able to replace the items for her benefit. Does the daughter or the estate have the same rights as our insured in electing to replace personal property items? Understandably, the daughter or the estate should be reimbursed for the actual cash value, but it does not seem right that the replacement cost rights under the policy should go to someone who is not our insured. Had the lady passed away for reasons other than the fire, the daughter or the estate would have had the rights to the property, but it would have been used property and not new.