Extended replacement cost: California's residential disclosure (Section 10102) describes it as additional coverage above the dwelling limits, up to a stated percentage or dollar amount. Example: a $500,000 dwelling limit with 20% extended replacement cost has a ceiling of $600,000. Paying the full rebuilding cost regardless of the limit would be guaranteed replacement cost, which is a different coverage.

Rebuilding elsewhere: a policy may not limit or deny replacement cost, including extended replacement cost, because the insured buys or rebuilds at a new location, to the extent those costs are otherwise covered. The payment cannot exceed what it would cost at the original location (Section 2051.5(c)(1)), and a residential policy may not deduct the value of land at the new location (Section 2051.5(c)(2)).

Building code upgrade: California requires building code upgrade coverage of at least 10% of the dwelling limit (Section 10103(c)). The rule does not apply to: - tenant, renter and similar policies that do not cover the dwelling structure (Section 10103(d), (e)(2)); - a policy that provides only actual cash value, with no replacement cost or code upgrade coverage (Section 10103(e)(1)). Age of the home and the presence of extended replacement cost do not create an exception.