Definition: Replacement cost is a method of loss replacement where the dollar amount needed to replace damaged property is paid without deducting for depreciation. The term also refers to a policy that uses replacement cost as the method to pay for losses.
Replacement Cost
By Gregory Boop, About.com Guide
Explore Business Insurance
Must Reads
About.com Special Features
10 Things You Can Do Today to Improve Your Credit
Easy steps to take control of your credit card debt. More >
Holiday Central
What to eat, where to go, fun things to do and how to save money on the perfect gifts. More >
©2009 About.com, a part of The New York Times Company.
All rights reserved.