Cal. Insurance Code § 2051 : California Insurance Code — Classes Of Insurance — The Fire Insurance Contract — Measure Of Indemnity — Measure of indemnity under open policy

15 Sep 2016

Current through the 2016 Legislative Session

(a) Under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing the thing lost or injured in its condition at the time of the injury, the expense being computed as of the time of the commencement of the fire.
(b) Under an open policy that requires payment of actual cash value, the measure of the actual cash value recovery, in whole or partial settlement of the claim, shall be determined as follows:
(1) In case of total loss to the structure, the policy limit or the fair market value of the structure, whichever is less.
(2) In case of a partial loss to the structure, or loss to its contents, the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less. In case of a partial loss to the structure, a deduction for physical depreciation shall apply only to components of a structure that are normally subject to repair and replacement during the useful life of that structure.
Ca. Ins. Code § 2051
Amended by Stats 2004 ch 605 (AB 2962), s 2, eff. 1/1/2005.