Where a residential fire or extended coverage policy settles at actual cash value, the insurer works that value out as what replacement would cost when the loss occurred, less any depreciation, and on the insured's request hands over the worksheets that detail each depreciation deduction. Where the insured has only a limited interest because the property is worth little or nothing economically, or its worth bears no relation to depreciated replacement cost, the formula need not be used, but the insurer must then explain in writing on request the basis for limiting recovery and the amount payable.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.