Policy Terms
Replacement Cost
Definition
A method of valuing insured property at the cost to replace or repair it with materials of similar kind and quality, without deducting for depreciation. Provides higher payouts than actual cash value.
In Zach’s Words
“Replacement cost is the good stuff. Unlike ACV, which subtracts depreciation, replacement cost pays to actually replace your damaged item with a brand new equivalent. Your 10-year-old TV gets destroyed? Replacement cost buys you a comparable new one. It costs a bit more in premium, but it's worth every penny when you need it.”
— Zach Nadler, CIO