If the optional replacement cost coverage provision is not selected,how are losses settled under the building and personal property (BPP)coverage form?

Question

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Without the optional replacement cost coverage provision, losses are settled based on actual cash value, which is the value of the property at the time of loss, taking into account depreciation. This means that the settlement amount may be less than the original purchase price or market value.

If the Optional Replacement Cost Coverage Provision Is Not Selected,how