Under the Loss Settlement condition of the ISO HO-3 form, to recover the full replacement cost on a partial dwelling loss without coinsurance penalty, the insured generally must carry Coverage A equal to at least:

Why this is the answer

The Loss Settlement condition of the ISO HO-3 form sets the homeowners replacement-cost framework used in New York. To recover replacement cost on a partial loss without a coinsurance reduction, Coverage A must equal at least 80% of the full replacement cost of the dwelling at the time of loss. If the insured falls below that threshold, the carrier pays the greater of actual cash value or a pro-rata replacement amount calculated against the 80% target. No New York regulation sets the 80% figure; it is a term of the policy form.