Policy Terms

Replacement Cost

Replacement Cost is defined as: The amount it would cost to replace damaged property with new property of similar kind and quality, without deducting for depreciation.

Replacement cost coverage pays the full amount to replace damaged property with new items. Unlike ACV, there's no deduction for depreciation, providing better financial protection.

Related Terms

Actual Cash Value (ACV)

The replacement cost of damaged property minus depreciation due to age, wear, and tear.

Coverage Limit

The maximum amount an insurance company will pay for a covered loss under your policy.

Need Help with Your Insurance?

Our network of specialists can help you understand your coverage options and find the right protection for your high-risk property.