Insurance that provides for the current market value, rather than the depreciated value of property in the event of an insured peril.
On your household contents, this popular alternative to Actual Cash Value reimbursement pays you at today's cost to replace or repair lost or damaged property--subject to your policy limits and your chosen deductible (and provided actual repairs are made). This coverage must be specifically requested.
coverage where the insured receives an amount equal to the replacement value of damaged property.
Unlike other types of insurance, replacement cost insurance does not depreciate your property of contents values. Every covered item that needs to be replaced will be treated as if it were brand new.
Homeowner's insurance that pays the cost to replace or repair the insured home or possessions, up to the policy's set maximum. Provides more protection than actual cash value coverage.
Also: Maximum Value Protection. This option further increases the liability of the carrier. Both the minimum declaration required and the rate charged for the coverage will be higher. However, this coverage provides for repair or replacement without regard to the age of the items damaged or destroyed. Extraordinarily high declarations may require supporting documentation. Coverage for automobiles is handled differently. Please ask your sale person for details.
