Replacement Cost
A method of valuing damaged or destroyed property based on the cost to replace it with a new item of similar kind and quality, without deducting for depreciation. Replacement cost coverage is more expensive than actual cash value but leaves you in a much better financial position after a loss.
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Disclaimer: This glossary entry is for informational purposes only and does not constitute financial or insurance advice. Consult with a licensed insurance professional for personalized guidance. GuardianChoices may earn affiliate commissions from links on this site — see our advertiser disclosure.
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