1. Pool equipment from a fire?

2. Awnings attached to the home destroyed by wind?

3 Pump houses destroyed by a tree that fell onto the pump house building and then required replacement of the tank and all related equipment.

The HO-3 (04-91) notes that the awning, carpet, and the like. are ACV payments. However, we pay carpet RCV when completed as part of the dwelling. So, if the language says: we owe ACV for the list of items, and they are replaced, we pay the RCV for carpet and appliances, but we do not for outdoor equipment or pool equipment? I cannot explain this when the policy reads we owe for the cost to replace. We use the terminology: “Structures that are not buildings; at actual cash value at the time of loss but not more than the amount required to repair or replace.”

The term “replace” seems to denote we owe replacement cost at the conclusion of the claim and owe ACV unless it is a building settlement for less than $2,500, provided all other provisions have been met and so long as limits have not been exhausted.

Please advise when, if ever, replacement costs are owed for other structures that are not buildings, like awnings, fences, sheds, pool equipment, or water tank equipment. When we use the phrase “to repair or replace at the time of the loss but not more than the amount required to repair or replace,” we seem to include replacement cost.

California Subscriber

Other structures and carpet attached to the dwelling are two different things; just because the dwelling is covered at RC does not mean that is owed for other structures that are not buildings, especially when the policy clearly states that certain types of property are settled at ACV. You are misreading the policy; ACV is the most that will be paid but not more than the cost to repair or replace; this does not mean replacement cost is the standard payout. For example, an awning worth $500 ACV is destroyed; however, the cost of a new awning of the same type is available for $300; therefore, even though the policy is ACV, the cost of the replacement awning is used since it is a lesser amount. If a new awning is $800, then the ACV of $500 is what is paid out. The policy is simply stating that the lesser value is used, even if the cost to repair or replace is less than ACV. It could be phrased this way:

Settlement is for the lesser of ACV or the cost to repair or replace.

The cost to replace is a factor only when that cost is less than the ACV of the property; in most instances this is not likely.