The DP-1 settles everything at actual cash value. The DP-2 and DP-3 settle buildings at replacement cost when the limit is at least 80% of full replacement cost.

Below 80%, the DP-2 or DP-3 pays the greater of actual cash value or this proportion of the repair cost: limit ÷ (80% of full replacement cost) × repair cost. Example: full replacement cost $500,000, so 80% is $400,000. With a $300,000 limit and a $20,000 repair, the proportion is $300,000 ÷ $400,000 × $20,000 = $15,000. If actual cash value is $12,000, the policy pays $15,000.

Even in the DP-2 and DP-3, these are settled at actual cash value: personal property, awnings, carpeting, appliances, outdoor antennas and equipment, and structures that are not buildings. Carpeting is the trap, because it stays at actual cash value even when installed.

Coverage D, fair rental value, pays for the shortest time needed to repair or replace, less expenses that do not continue. It does not pay for loss due to cancellation of a lease. Where the dwelling form includes additional living expense, California requires at least 24 months from the inception of a covered loss relating to a state of emergency (Section 2060(b)(1)), with up to 12 more months, for a total of 36, if a good-faith, diligent insured is delayed by circumstances beyond the insured's control.