REPLACEMENT VALUE CLAUSE.

It is hereby declared and agreed that in the event of the property insured  of the within policy being destroyed or damaged the basis upon  which the amount payable under this policy is to be calculated shall be the cost of replacing with property of the same kind or type but not superior to or more extensive than the insured property subject to the following special provisions and subject also to the terms and conditions of the policy except insofar as the same may be varied hereby.

Special Conditions :
1.    The work replacement or reinstatement (Which may carried out upon another site and in any manner suitable to the requirements of the Insured ,subject to the liability of the Company not being thereby increased) must be commenced and carried out with reasonable dispatch and in any case must be completed within 12 months after the destruction or damage or within such further time as the company  may (during the said 12 Months) in writing allow : otherwise no payment beyond the amount which would have been payable under the policy, if this memorandum had not been incorporated therein, shall be made.
2.    Until expenditure has been incurred by the Insured in replacing or reinstating the property destroyed or damaged , the company shall not be liable for any payment in excess of the amount which would have been payable under the policy if this memorandum had not been incorporated therein.
3.    If at the time of replacement or reinstatement the sum representing the cost which would have incurred  in replacement or reinstatement if the whole of the property covered had been destroyed ,exceeds the sum insured thereon at the breaking out of a by fire or at the commencement of any destruction of or damage to such property by any other peril insured against by this Policy, then the Insured shall be considered as being his own insurer for the excess and shall bear a rateable  proportion  of the loss accordingly .Each item of the Policy (If more than one) to which this memorandum applies shall be separately subject to the foregoing provision.
4.    This memorandum shall be without  force or effect if ;
(a)    The Insured fails to intimate to the company within 6 months from the date destruction or damage or such further time as the company may in writing allow his intention to replace or reinstate the property destroyed or damaged.
(b)    The Insured is unable or unwilling to replace or reinstate the property destroyed or damaged on the same or another site.

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