Zoning Changes won't allow Original Structure to be Rebuilt

January 23, 2017

I have a situation where we insure an apartment building, but due to zoning changes cannot be rebuilt as an apartment. Under the CP0010 with the replacement cost option, can the insured use the payment to rebuild a commercial building instead at the same location?

 

Hawaii subscriber

I see nothing in the policy that requires you to rebuild the exact same building. The only parameters you are going to be bound by is that the settlement will be based on the building that was destroyed; no more than that will be covered, even if the new construction exceeds that value.