Section 2051 Of Article 2. Measure Of Indemnity From California Insurance Code >> Division 2. >> Part 1. >> Chapter 2. >> Article 2.
2051
. (a) Under an open policy, the measure of indemnity in fire
insurance is the expense to the insured of replacing the thing lost
or injured in its condition at the time of the injury, the expense
being computed as of the time of the commencement of the fire.
(b) Under an open policy that requires payment of actual cash
value, the measure of the actual cash value recovery, in whole or
partial settlement of the claim, shall be determined as follows:
(1) In case of total loss to the structure, the policy limit or
the fair market value of the structure, whichever is less.
(2) In case of a partial loss to the structure, or loss to its
contents, the amount it would cost the insured to repair, rebuild, or
replace the thing lost or injured less a fair and reasonable
deduction for physical depreciation based upon its condition at the
time of the injury or the policy limit, whichever is less. In case of
a partial loss to the structure, a deduction for physical
depreciation shall apply only to components of a structure that are
normally subject to repair and replacement during the useful life of
that structure.