To the extent that the carrier has knowingly or carelessly sold excessive (i.e. unnecessary) insurance, such a practice may constitute consumer fraud.
Replacement cost coverage is designed so the policy holder will not have to spend more money to get a similar new item and that the insurance company does not pay for intangibles.
Major estimation companies include CoreLogic subsidiary Marshall Swift-Boeckh, Verisk Analytics PropertyProfile, Bluebook International, and E2Value.
[7] Historically, consumers could purchase "guaranteed replacement cost" coverage which ensure sufficient limits if the estimate was too low, but these became "virtually extinct" after several California disasters including the Oakland firestorm of 1991, the Laguna Beach fires, and the 1994 Northridge earthquake.
If the cost of maintenance and eventual replacement of a road (usually due 20 to 25 years after construction) exceeds the funds the (usually local) government has available or could raise to cover it, it could result in bankruptcy.