The value of purchasing a new replacement for lost or damaged property.
Replacement value is equal to the price it takes to replace or repair damaged property with new or restored property of similar quality. This may or may not be the "market value" of the original item.
For example, if your laptop is stolen, a replacement-value Property Insurance policy would pay to replace the laptop with a similar model that's available on the market today. Insurance providers differentiate replacement value from actual-cash value, which accounts for the item's depreciated value.
Typically, replacement-value insurance policies are more expensive and often require that the item be repaired or replaced before the policyholder can be reimbursed.
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