Replacement Cost

Replacement cost is a valuation method that pays to replace damaged property with new property of like kind and quality, without subtracting for age or depreciation.

How it shows up

It applies to your home's structure and often your belongings, and it is why your dwelling limit should reflect rebuilding cost. It pays more than actual cash value, which subtracts depreciation.

Replacement Cost vs Actual Cash Value → Homeowners insurance →

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