REPLACEMENT COST CLAUSE

It is understood that in the event of loss or damage settlement shall be based upon the cost of repairing, replacing, or reinstating (whichever is the less) with material of like kind and quality without deduction for depreciation, subject to the following provisions:
(a)    The repairs, replacement or reinstatement (all herein after to as “replacement” must be executed with due diligence and dispatch).
(b)    Until replacement has been effected the amount of liability under this Policy in respect of loss shall be limited to the actual cash value at the time of loss.
(c)    If replacement with material of like kind and quality is restricted or prohibited any by laws, ordinary or law, any increased cost of replacement due there to shall not be covered by this endorsement.
(d)    The underwriters liability for loss under this Policy including this Endorsement shall not exceed the smallest of the following amounts.
(e)    The amount of the Policy applicable to the destroyed or damage property.
(f)    The replacement cost of the property of any part thereof identical with such property and intended for the same occupancy and use.
(g)    The  amount actually and necessarily expended in replacing said property or any part thereof.
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