Final answer:
The statement that is NOT true regarding the Replacement Cost endorsement is that it applies to both the insured property and any property of others. The endorsement usually only covers the insured property, not the property of others that might be on the premises.
Step-by-step explanation:
The statement that is NOT true of the Replacement Cost endorsement to the Buildings & Structures Form of a commercial property policy is: D. It applies to both the insured property and any property of others on the insured premises. This is because the Replacement Cost endorsement typically only applies to the insured property, not to the property of others.
The correct details for the other options are as follows: A. The policy still pays ACV up front, and then the remainder of the actual cost to repair or replace after the repair/replacement has been completed. This means that the insurer will first pay the Actual Cash Value (ACV) of the damage and will pay the remaining balance once the property is repaired or replaced, assuming all policy conditions are met.< /p>
B. It changes the loss settlement terms of the policy from ACV to RCV. The Replacement Cost endorsement alters how a loss is settled, from Actual Cash Value, which includes depreciation, to Replacement Cost Value, which does not factor in depreciation.
Regarding C. It always requires the policyholder to meet at least an 80% level of coinsurance, this is typically true, but the exact percentage may vary by policy. Coinsurance is a clause that requires the policyholder to insure the property to a certain percentage of its value, often around 80%, to receive full payment for a partial loss.