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to restore the dwelling was $1,016,211.69, which included the
cost of an architect and building code upgrades. A Chubb claims
specialist estimated that the cost of rebuilding other structures
(e.g., retaining walls, driveway, and patio) would be
$129,413.11. During August 1992, Chubb and decedent entered into
a “Settlement Statement and Agreement to Rebuild At Same Location
(Subject to The Terms and Conditions of the Policy)”. Under that
document, decedent made the choice to reconstruct or restore her
residence, and Chubb undertook the commitment to reimburse
decedent for the restoration in an amount up to $1,299,346.94.
Chubb’s obligation under the agreement, however, was subject to
change (would be less) if decedent “[decided] not to replace part
of the building or other structures or if the cost of * * *
construction is less” than estimated. Chubb withheld a portion
of any amount due under the agreement to ensure compliance with
decedent’s agreement to reconstruct. The agreement called for
release of reimbursement payments by Chubb in an incremental
manner: One-third upon execution of the agreement, one-third
when the architect and/or contractor advised Chubb that the
framing was completed, and one-third when presented with a notice
of occupancy by the city.
During the summer of 1993, decedent entered into an
agreement with Krueger to build a replacement residence on the
Manchester Drive land for a projected estimated price of
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Last modified: May 25, 2011