Replacement Cost Value
/ˈrɛplɪsmənt kɒst ˈvæljuː/
Definitions
- (n.) The amount required to replace damaged or destroyed property with a new one of similar kind and quality, typically used in insurance valuation.
The insurer agreed to pay the replacement cost value of the damaged vehicle.
Forms
- replacement cost value
Related terms
See also
Commentary
Used primarily in insurance law, replacement cost value excludes depreciation, contrasting with actual cash value which accounts for wear and tear.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.