When insureds complete improvements or repairs around theirproperties themselves, the question arises whether actual cashvalue would be calculated differently than if contractors did thework. Would the calculation of replacement costs be treateddifferently?

By definition, a do-it-yourselfer is one who repairs or replacesdamaged property himself. Thus, under a replacement cost policy,the do-it-yourselfer would be entitled to recover replacement cost,as opposed to actual cash value. There are, however, circumstancesin which actual cash value recoveries are greater than replacementcost recoveries (see below). In such instances, insureds may electto receive actual cash value.

Also, do-it-yourselfers may have insured their properties atactual cash value. This might be the case, for example, with asmall business that elected the actual cash value option of abusiness-owners policy.

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