Under former Ins. Code 2051.5, an insurer’s liability under a replacement cost policy was the lesser of (a) the amount it would cost to replace the damaged structure at the insured location (without regard to depreciation), or (b) the policy’s limits.  If the insurer requires the insured to repair the structure before claiming replacement cost, the insurer must first pay the value of the undamaged, and the remainder of the actual replacement cost incurred upon completion of repairs.  If the insured rebuilds at a different location, the measure of the insurer’s liability remains the same, but is capped by the cost of repairs at the insured location, not the new one.  Here, the insureds rebuilt at a different location, but spent less than the actual cash value of their destroyed house.  As a result, the insurer’s liability was limited to the actual cash value rather than the higher amount it would have cost to replace the damaged house at the insured location, as the insured had not actually incurred those increased costs.)