An Illinois homeowner has a covered total fire loss. Under standard HO-3 loss settlement terms, by when must the insured actually complete repair or replacement to claim the full replacement cost (rather than ACV plus holdback)?

Why this is the answer

Under the standard HO-3 loss settlement provision used in Illinois, the carrier initially pays ACV and holds back depreciation. The insured then has up to 180 days from the loss to actually repair or replace and submit invoices to claim the replacement cost holdback. The 180-day clock runs from the date of loss, not the date of ACV payment, though carriers commonly grant extensions on request for legitimate delays.