The standard homeowners' insurance settlement provision property will be repaired or replaced without deduction for depreciation costs. (Photo:

Analysis brought to you by the experts at FC&S Online, the unquestioned authority on insurance coverage interpretation and analysis for the P&C industry. To find out more — or to have YOUR coverage question answered — visit the National Underwriter website, or contact the editors via Twitter: @FCSbulletins.

Question: My question is in regards to Functional Replacement Cost (FRC). The definition refers to “obsolete, antique or custom construction.”  What happens when the damage is to a roof that is 8 years old, which is not obsolete, antique or custom construction? 

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