What it does
Settles losses to the dwelling and other structures at actual cash value (replacement cost less depreciation) rather than replacement cost.
Who needs it
Older homes, homes in poor condition and risks where the market value is well below replacement cost.
Quoting and selling notes
- Disclose the change clearly; clients often assume replacement cost. Consider HO 05 30/05 31 as alternatives.
Editions and availability
Editions in use and where they apply: 03 22 (38 jurisdictions); 05 11 (8 jurisdictions: AL, CA, FL, GA, HI, LA, NC, VI); 10 00 (1 jurisdiction: PR).
Homeowners endorsements are built for a specific program edition. When a carrier moves a state from the 2011 (05 11) program to the 2022 (03 22) program, the endorsement editions move with it, so match the endorsement edition to the policy form edition shown on the declarations.
