Westmoreland

Filed 12/28/

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION THREE

ROBERT WESTMORELAND et al., Plaintiffs and Respondents,

A160387

v. FIRE INSURANCE EXCHANGE, (Lake County Super. Ct. No. CV418827) Defendant and Appellant.

This case requires an analysis of the indemnity owed under an extended replacement cost insurance policy after the plaintiff insureds suffered a total loss of their insured dwelling. The defendant insurer had paid the plaintiffs an amount equivalent to the actual cash value of the lost dwelling, and they built a replacement dwelling at a different location for no more than that amount. After the defendant refused to make additional indemnification payments, the plaintiffs filed the instant action to recover the difference between the amount they already received and the estimated amount of what it would have cost to rebuild their dwelling at the insured location. Section 2051.5 of the Insurance Code 1 addresses the measure of indemnity for a policy of insurance “that requires payment of the replacement cost for a loss.” (§ 2051.5, subd. (a)(1).) During the policy period at…