It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the policy or endorsed thereon and subject to the Insured having paid the agrees extra premium, where an insured item is totally destroyed or damaged beyond repair, the basis upon which the amount payable under the policy is to be calculated shall be the full replacement value of the item destroyed or damaged.
Replacement Value shall mean the costs which would have to be incurred immediately before destruction of or damage to an insured item for replacing the destroyed or damaged item by a new item of a similar kind, capacity, size and quality.
