FAQ - Replacement Cost

What is replacement cost?

Replacement cost is a method for valuing the reimbursement of property on an insurance policy.

The most important concept to understand in regards to replacement cost is "new for old, like kind and quality." The insurance company is going to give you the amount of money (up to your policy limit) that it takes for the materials and labor to replace your home. In most cases, this is the preferred property valuation method.

 

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