Kentucky Insurance Commissioner Sharon P. Clark and the Kentucky Department of Insurance published an Advisory Opinion addressed to all admitted insurers and licensed adjusters authorized to investigate and settle property claims in the state, addressing the Department's interpretation of Kentucky Law 3 Section 9(1)(b). The law states that for fire and extended coverage policies that have replacement cost coverage:

"If a loss requires replacement of items and the replaced items do not reasonably match in quality, color, and size, the insurer shall replace all items in the area so as to conform to a reasonably uniform appearance. This applies to interior and exterior losses. The insured shall not bear any cost over the applicable deductible."

The Department states that their interpretation of "area" means the entirety of a part used for a specific purpose, such as an entire roof, an entire contiguous interior carpet, an entire contiguous interior tile floor, etc.