REPLACEMENT WITH SMALLER AND/OR CHEAPER PROPERTY

Notwithstanding the provisions of Clause 4.3, Basis of Settlement Clause 4.4.4 is extended to include the following paragraph.
If any lost or destroyed Property Insured is replaced by smaller and/or cheaper property, then the Insurer shall pay to the Insured, in addition to the cost of such smaller and/or cheaper property, the difference between the cost of reinstatement of the lost or destroyed Property Insured that would have been incurred if such property had been reinstated in accordance with the Policy Definition (4.1) of “Reinstatement Value” and the cost of the said smaller and/or cheaper property. This paragraph shall override the limitations of the Output Replacement Clauses, to the extent that they may conflict.

The provisions of Average/Under insurance Condition 7.2 do not apply to this endorsement.