Options for Settling Fire Loss

November 11, 2013

I am handling a fire loss at a restaurant, which appears to be underinsured. The policy form is a CP 00 10, and the loss is subject to replacement cost coverage. I thought that the insured could elect to settle the loss at actual cash value rather than bearing the coinsurance penalty. I have looked through the policy form and cannot find where it indicates that. Am I thinking of another policy form or does the CP 00 10 provide that option and I am just not locating it in the policy form?

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