Insurance Glossary

Replacement Cost

Property

Definition

The cost to replace damaged or destroyed property with new property of similar kind and quality, without deduction for depreciation.

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Related Terms

Actual Cash Value
The repayment value for indemnification due to loss or damage of property; in most cases it is replacement cost minus depreciation.
Depreciation
The decrease in value of property over time due to wear, tear, age, or obsolescence.
Coverage
The scope of protection provided under an insurance policy, including the types of losses and risks that are covered.
Flood Insurance
Specialized insurance coverage for property damage caused by flooding, typically not covered by standard homeowners insurance.
Homeowners Insurance
Insurance coverage that protects your home and personal property against damage, theft, and liability claims.
Renters Insurance
Insurance coverage for tenants that protects personal property and provides liability coverage, but does not cover the building structure.
Jewelry Insurance
Specialized insurance coverage for valuable jewelry, watches, and gemstones that provides protection against loss, theft, damage, and mysterious disappearance. Often purchased as a scheduled personal property endorsement to homeowners or renters insurance.
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