Residential property insurance.

Existing law requires a named insured on a residential property insurance policy be provided with a copy of the California Residential Property Insurance Disclosure, which sets forth a description of certain types of insurance coverage, such as actual cash value coverage and guaranteed replacement cost coverage. Under an open policy that requires payment of actual cash value, existing law requires the measure of the actual cash value recovery for either a total or partial loss to the structure or its contents to be 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. Under existing law, a deduction for physical depreciation under actual cash value coverage applies only to components of a structure that are normally subject to repair and replacement during the useful life of that structure. This bill would amend the description of actual cash value coverage on the California Residential Property Insurance Disclosure to conform to the existing statutory requirements of an open policy that requires payment of actual cash value. The bill would also make nonsubstantive, technical changes.