Under Florida §627.7011, when is an insurer required to offer replacement cost coverage on a residential homeowners policy rather than settling on an ACV basis?

Why this is the answer

Florida §627.7011, captioned 'Homeowners' policies; offer of replacement cost coverage and law and ordinance coverage,' requires the insurer, before issuing any homeowner's policy, to offer replacement cost coverage on the dwelling, with and without law and ordinance coverage; the statute sets no insurance-to-value threshold for the offer. Unless the policyholder rejects the offers in writing, the policy is deemed to include law and ordinance coverage of 25% of the dwelling limit. ACV settlement reduces the payout by depreciation. RC settles without depreciation deduction (or pays depreciation holdback upon completion of repairs). The offer is owed to every applicant: it does not wait for a written request, it is a statutory duty rather than a market option, and it is not limited to Citizens. See §627.7011, Florida Statutes.