In October 2009, John and Cathy Clary obtained a homeowner’s insurance with Allstate Fire and Casualty Insurance Company for their residence located in Eatonton, Georgia. The policy provided that, in the event of a covered loss, Allstate had the option to repair, rebuild, or replace all or any part of the damaged property within a reasonable time or pay for all or any part of the damaged property. The policy required Allstate to exercise its option within 30 days after it received a signed and sworn proof of loss. On August 3, 2010, lightning struck the Clary residence, resulting in a fire, which was extinguished by firefighters. Allstate subsequently hired Elite Response, Inc. to perform the mitigation work and Icon Restoration, Inc. to perform the repairs. The Clarys subsequently reported to Allstate that mold as a result of the extinguishment of the fire was present on the property. Mold was covered under the policy, but the parties could not agree on how to remediate the problem.

Allstate and the Clarys selected appraisers in order to determine the cost of structural repairs. The appraisers issued a joint appraisal agreement determining the cost of repairs to be $486,883.52. Based upon this report Allstate decided not to pursue repair of the premises but rather issued checks payable to the Clarys for the amount determined by the appraisers. The Clarys returned the checks to Allstate and demanded that it complete the restoration of the property. Allstate refused, and the Clarys brought an action against Allstate for breach of the insurance contract. The Clarys contended that when the privilege to rebuild or repair property is reserved in a policy, and the insurer asserts that privilege and begins repair and restoration, the insurer cannot later abandon the restoration and change its election to paying for the loss. The trial court granted Allstate’s motion for summary judgment, and the Clarys appealed to the Georgia Court of Appeals. How should the Georgia Court of Appeals decide this case? Should the court excuse Allstate from restoring the property even after construction commenced? Why or why not?