What is replacement cost?

Replacement cost is a method for valuing the reimbursement of property on an insurance policy.

The most important concept to understand in regards to replacement cost is “new for old, like kind and quality.” The insurance company is going to give you the amount of money (up to your policy limit) that it takes for the materials and labor to replace your home. In most cases, this is the preferred property valuation method.

Watch this video “What is replacement cost?” for more details:

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This is video #6 of a 100 insurance video series that The Murray Group is producing to provide insurance consumers with quick, valuable answers to their everyday insurance questions.

If you have additional questions regarding replacement cost or property insurance or if you would like to discuss and receive a quote for a homeowners or rental property insurance policy, use the link below:

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Disclaimer: This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions taken or not taken by the readers based upon such information.

created by Ryan Hanley

What is replacement cost? by
Ryan Hanley

Ryan Hanley

Director of Marketing at The Murray Group
Ryan is the Director of Marketing for The Murray Group Insurance Services, Inc. Ryan is also the Founder of Content Warfare Podcast, one of the fastest growing podcasts on iTunes dedicated to digital marketing.
Ryan Hanley
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  2. […] This isn’t exactly one of the 9 Steps but it’s very important to take a look at your homeowners insurance renewal every year and verify that your home is still insured at Replacement Cost. […]

  3. […] proud of his family’s insurance history.  He also always bought the proper coverage, 100% replacement cost on his home, maxed out his liability insurance on every vehicle, etc.  He protected his […]

  4. […] to because I’ve seen the look on a person’s face when they learn difference between Replacement Cost and Actual Cash Value the hard […]

  5. […] replacement cost value used to insure a home in Albany, NY is very important.  Insurance on older homes is all about […]

  6. […] to not get too technical on you I would say that as long as your policy in written and insured at Replacement Cost you are doing […]

  7. […] property owners prefer to insure their property at replacement cost instead of actual cash […]