Replacement cost insurance

by raye8800 » Tue Jan 19, 2010 04:18 pm

What is replacement cost insurance and what are the benefits.

Total Comments: 2

Posted: Wed Jan 20, 2010 11:53 am Post Subject:

Check out the following threads and see if it helps you!
One is about replacement cost insurance on someone's home-
http://www.ampminsure.org/home/replacement-cost.html
The other one is about ACV and replacement cost-
http://www.ampminsure.org/home/acv-replacement.html

Posted: Thu Jan 21, 2010 12:36 pm Post Subject: Replacement cost

It is an insurance which provides coverage that replaces damaged property with other property of similar kind and quality on the basis of its current market value without considering its depreciated value on the loss incurred.

As for the benefits, it is not determined on the actual cash value and so no deduction for depreciation is made. It also provides partial coverage on properties that are not insured for full replacement cost.

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