Say you have a dwelling built in as early as 1850 that's been fully updated, but not completely gutted to the studs. This dwelling doesn't qualify for Replacement Cost or Actual Cash Value, but it now qualifies for Functional Replacement Cost.
Personal Lines has made it possible for you to add this form when writing business with our Homeowner (HO-3) Program. Functional Replacement means we'll cover the repair or replacement of damaged obsolete, antique, or custom construction materials with less costly materials that are functionally equivalent. For example, a now rare wood like mahogany will be replaced with a more available, but aesthetically consistent, alternative wood.
Your Personal Lines underwriters have already been offering quotes on such risks.