California Insurance Code Section 2051.5 (replacement cost measure of indemnity, actual cash value holdback, and time to collect)
Published by California Legislative Information (official). Jurisdiction CA.
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These are the only claims this record is used to carry anywhere in the library.
Under an open policy that requires payment of the replacement cost for a loss, the measure of indemnity is the amount that it would cost the insured to repair, rebuild, or replace the thing lost or injured, without a deduction for physical depreciation, or the policy limit, whichever is less.
claim ca-ins-code-2051-5#c1A time limit of less than 12 months from the date that the first payment toward the actual cash value is made shall not be placed upon an insured to collect the full replacement cost.
claim ca-ins-code-2051-5#c2For a loss relating to a state of emergency, a time limit of less than 36 months from the date that the first payment toward the actual cash value is made shall not be placed upon the insured.
claim ca-ins-code-2051-5#c3An insurer shall provide to a policyholder one or more additional extensions of six months for good cause where delays are beyond the insured's control.
claim ca-ins-code-2051-5#c4For a loss relating to a state of emergency, an insurer shall not require the insured to provide proof of loss less than 100 days after the loss.
claim ca-ins-code-2051-5#c5On and after July 1, 2026, all policy forms issued or renewed by an insurer shall comply with this section in its entirety.
claim ca-ins-code-2051-5#c6The section states its own scope: it applies 'Under an open policy that requires payment of the replacement cost for a loss'.
claim ca-ins-code-2051-5#c7Within that scope, the measure of indemnity is the amount that it would cost the insured to repair, rebuild, or replace the thing lost or injured, without a deduction for physical depreciation, or the policy limit, whichever is less.
claim ca-ins-code-2051-5#c8The insurer pays the actual cash value of the damaged property until the damaged property is repaired, rebuilt, or replaced, and once it is repaired, rebuilt, or replaced the insurer pays the difference.
claim ca-ins-code-2051-5#c9A time limit of less than 12 months from the date that the first payment toward the actual cash value is made shall not be placed upon an insured, and a time limit of less than 36 months shall not be placed upon the insured for a loss relating to a state of emergency.
claim ca-ins-code-2051-5#c10The insurer shall provide one or more additional extensions of six months for good cause, where the insured acting in good faith and with reasonable diligence encounters delays beyond the insured's control in approval for or reconstruction of the home or residence.
claim ca-ins-code-2051-5#c11
Each claim above has its own address. Link to a single claim with/sources/ca-ins-code-2051-5#c1, and read the same list with its identifiers, checksums and dates at ca-ins-code-2051-5.json. A checksum lets you tell whether a claim you cited still says what it said.
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Reviewer notes
Effective: 2026-07-01 for full policy-form compliance, per subdivision (e) as displayed