After a covered fire loss, a Georgia HO-3 insured initially accepts an actual cash value payment, intending to claim the replacement-cost holdback later. Under the typical HO-3 replacement cost provision, within what period after the loss must the insured notify the insurer of the intent to repair or replace in order to keep the right to claim the RC holdback?

Why this is the answer

Under the HO-3 replacement cost loss settlement condition, the insurer pays no more than actual cash value until repair or replacement is actually complete. An insured who takes the ACV payment first can still claim the difference later, provided the insured notifies the insurer within 180 days after the date of loss of the intent to repair or replace the damaged building. The repair itself must then be completed before the replacement cost holdback is paid.