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Anna's home is located in a historic district. Because various building components in her home are no longer used in modern structures, its replacement cost
Anna's home is located in a historic district. Because various building components in her home are no longer used in modern structures, its replacement cost value is high, and so is her homeowners insurance premium if she insures to value. Her insurance agent suggests she consider an endorsement that would provide coverage on a functional replacement cost basis. Why should Anna reject this suggestion?
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a Contractors who specialize in restoration will not honor this endorsement.
b Functional replacement cost insurance covers fewer causes of loss.
c Replacing original building components with functionally equivalent items might not be permitted.
d This endorsement would not reduce her premium.
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