( Insurance : Residence insurance )
A provision allows settlement of losses to outbuildings to be on a replacement cost basis in lieu of actual cash value under the current policy.
Your building and contents will be written on a replacement cost basis which would replace items lost with payment equal to today's purchase price of those
items, with no deduction for depreciation.
Replacement cost basis is a method of valuing insured property in which the cost of replacing property is
calculated without a reduction for depreciation.
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