B after the fire spread in the house it destroyed the

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(B) After the fire spread in the house it destroyed the whole house. On the different location guaranteed replacement cost coverage won’t be applied. There are some reasons which are classified below: Replacement means the coverage only applies to rebuilding at the same location and must be made prompt. The amount of the insurance on the dwelling (home) would be kept not less than the cost to replace the home, as it is evaluate by valuation guidelines and acceptable to the insurer who pays for replacement without reduction for depreciation. The owner should notify the insurer within the 90 days when the work starts on home improvement, extension, additional to the dwelling. Material and quality should be used same as it was before the accident which means the insurer have this option under replacement cost policy. If the material is old so it is hard to find in this era than that material value should be paid by the insurer instead of same material.
But in this case the insured had a choice to build their home in different location so it is not eligible under this policy which insurer had to deny for coverage of the loss. THE END

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