It is understood and agreed that otherwise subject to the terms, exclusion, provision and conditions contained in the policy or endorsed thereon, where an insure items totally destroyed or damaged, 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 damage.
“Replacement Value” shall mean the cost, 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 similar kind, capacity, size and quality.
