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Replacement Cost Coverage
Pays what it actually costs to repair or replace your property today, with no depreciation deducted.
What it actually means
Unlike actual cash value, replacement cost coverage pays what it costs to rebuild or replace your property at today's prices, regardless of its age or depreciation. It typically costs a bit more in premium but closes the gap that leaves homeowners underinsured after a major loss.
Example: A 10-year-old roof destroyed in a storm is replaced at full current cost, not its depreciated value.
See it in context
Run the free Insurance Coverage Blueprint to see how replacement cost coverage and terms like it apply to your specific situation — no signup required.