What does Replacement Cost Policy mean? Read on to discover the definition & meaning of the term Replacement Cost Policy - to help you better understand the language used in insurance policies.
Replacement Cost Policy
Type of homeowners insurance policy that covers the cost to replace or repair the building and/or personal possessions (up to the policy's limit) which is more than the value covered by an actual cash value policy or a market value policy.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Replacement Cost Policy. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: