Under the standard HO-3 loss settlement condition, buildings under Coverages A and B are settled at replacement cost when the policy's insurance-to-value condition is met.

Settled at actual cash value, whether or not attached to a building: - personal property; - carpeting, awnings and household appliances; - structures that are not buildings. So installed carpet is depreciated even when the drywall and shingles in the same loss are not. Company forms and endorsements can differ.

California's ACV rule (Section 2051(b)): for a total or partial loss to the structure or contents, ACV is the cost to repair, rebuild or replace, less a fair and reasonable deduction for physical depreciation based on condition at the time of the injury, or the policy limit if less. Depreciation applies only to components normally repaired or replaced during the structure's useful life. Fair market value is not the test under the current statute, though some older materials still describe it.