What is Replacement Cost insurance?

definition-of-replacement-cost-insurance-coverageReplacement Cost coverage is not a type of insurance, it is a type of property loss coverage within a policy.

Replacement Cost coverage pays your property damage or loss claim based on the cost of replacing the item. This is much better coverage than Actual Cash Value (ACV) coverage.

Replacement Cost coverage does not mean that you & the claims adjuster will not disagree over what it will cost to replace the item, but it does mean that you will almost always receive more money than with an ACV claim payment.

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