does property replacemnt value consider rise in marketvalue?
by Guest » Mon Jan 28, 2013 11:14 am
How the replacement value is calculated for business property? Does it take inflation or rise in property value into account?
Total Comments: 2
Posted: Mon Jan 28, 2013 01:44 pm Post Subject:
Replacement cost is what it would cost to replace an item at the time of the loss... with no depreciation. SO it does consider an increase in value/cost but it also considers a decrease. It might cost more now to replace something (a roof lets say) or it might cost less (for an LCD TV).
Posted: Tue Jan 29, 2013 02:22 pm Post Subject:
yes, it does take rise in property value into account.
Posted: Mon Jan 28, 2013 01:44 pm Post Subject:
Replacement cost is what it would cost to replace an item at the time of the loss... with no depreciation. SO it does consider an increase in value/cost but it also considers a decrease. It might cost more now to replace something (a roof lets say) or it might cost less (for an LCD TV).
Posted: Tue Jan 29, 2013 02:22 pm Post Subject:
yes, it does take rise in property value into account.
Add your comment