Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-150 - ESTIMATION OF REPLACEMENT COST OF INSURED DWELLINGS
Section 482-1-150-.04 - Definitions

(a) Dwelling Coverage means property insurance, typically designated as "Coverage A" in a homeowner insurance policy (and not including Coverage B - Other Structures), written by an Insurer on a dwelling used principally or primarily as a private residence. Dwelling Coverage does not include property insurance covering mobile or manufactured homes, condominiums, or commercial structures, or coverage under renters' policies.

(b) The Dwelling Coverage Limit is the limit, expressed in dollars, of the Insurer's liability for Dwelling Coverage as expressed for Coverage A in the declaration page of a policy.

(c) Replacement Cost is the estimated cost to rebuild the dwelling using like materials and construction at current labor and material costs, and possibly including, but not limited to, the cost of debris removal, building permits, architect fees, and compliance with building ordinances or laws.

(d) The Estimated Replacement Cost Method is the methodology used by the Dwelling Owner, Insurer, or on behalf of the Insurer for calculating or changing the Dwelling Coverage Limit.

(e) The Dwelling Owner is the person or persons identified as the named insured in a policy including Dwelling Coverage.

(f) An Insurer is an insurance company authorized to provide property insurance including Dwelling Coverage in the State of Alabama.

(g) Owner Information is information about the insured structure(s) obtained by the Insurer from a Dwelling Owner or other sources that is used by the Insurer in applying the Estimated Replacement Cost Method to select the Dwelling Coverage Limit.