What does Replacement Cost mean? Read on to discover the definition & meaning of the term Replacement Cost - to help you better understand the language used in insurance policies.
Replacement cost refers to the amount of money required to replace a piece of property when depreciation of the item's value is not taken into account. In the context of property insurance, replacement cost can dictate the amount an insurer will have to pay out to a policyholder to satisfy a claim.
We hope the you have a better understanding of the meaning of Replacement Cost.