Replacement Cost Coverage

This form of insurance provides coverage on the basis of full replacement cost without deduction for depreciation on any loss sustained, subject to the terms of the co-insurance clause. This coverage applies to both building and contents items as specified on the face of the policy. No deduction is taken for depreciation in arriving at the proper amount of insurance needed to comply with the co-insurance clause.

Looking to learn more?

At The Insurance Center, we want to empower you with knowledge about insurance. Check out our glossary for a listing of important insurance terminology to help you get started.