Question: Recognizing that demand surge can have a major effect on the cost of reconstructing a home destroyed in a catastrophic event that concurrently damages many

Recognizing that demand surge can have a major effect on the cost of reconstructing a home destroyed in a catastrophic event that concurrently damages many homes, Bill and Heather requested extended replacement cost coverage on their homeowners policy. The insurer issued a policy with the Specified Additional Amount of Insurance for Coverage A-Dwelling Endorsement attached. To obtain the protection they want, the endorsement requires Bill and Heather to meet all of the following conditions, EXCEPT:
a. Maintain a dwelling limit required by the insurer based on the insurer's inspection of the property.
b. Maintain a dwelling limit required by the insurer that reflects any inflationary increase in the home's insurable value.
c. Notify the insurer within 30 days of any improvements and betterments that increase values by 5 percent or more.
d. Rebuild the home at the same location within 180 days of the loss.

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