Replacement Value
/ˈrɛpləsmənt ˈvæljuː/
Definitions
- (n.) The monetary amount needed to replace an asset with a new one of similar kind and quality at current prices.
The insurance policy covers the replacement value of the damaged equipment.
- (n.) The amount required to repair or restore property to its original condition.
The claimant sought compensation based on the replacement value of the destroyed property.
Forms
- replacement value
Related terms
See also
Commentary
Replacement value is often used in insurance law to denote coverage based on cost to replace rather than actual cash value, avoiding depreciation deductions.
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.