Question: The ISO Dwelling 3 policy provides replacement cost benefits. Please provide your interpretation of the application of benefits as it relates to the time to recover RCD. Shouldn't the 180 days apply? Does the policy condition listed on page 7, no. 5, section 5 beginning with “You may disregard…” remove the 180 day stipulation?

— Louisiana Subscriber

Answer: I'm looking at the standard ISO language from the DP 00 03 12 02 and 07 14 edition dates, the language concerning replacement cost is the same. Each policy states that the insured may disregard replacement cost settlement and opt for actual cash value. The insured has 180 days after the loss to notify (emphasis added) the carrier of their intent to repair or replace the damaged building. The repairs don't have to take place in that 180 days, the insured just has to notify the carrier of his intent to do so. If the insured does not notify the carrier of his intent to repair the property and he later does so, he cannot collect the difference even though the property was repaired.