Insurance term
Replacement Cost
A way of settling a claim that pays what it costs to buy a new item of similar kind and quality today, without subtracting for age or wear. It usually costs more than actual cash value coverage.
Example
If a five-year-old TV is destroyed, replacement cost pays for a comparable new TV instead of the used value.
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Home Insurance
Safeguard your home and belongings with reliable homeowners insurance.
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