What does Replacement Value mean? Read on to discover the definition & meaning of the term Replacement Value - to help you better understand the language used in insurance policies.
Replacement value is a property insurance term referring to the cost of replacing an asset in its pre-loss condition with an asset of a like kind and quality.
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 Value. 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: