replacement cost insurance

Replacement cost insurance is a type of coverage that pays to repair or replace your damaged or stolen property with new items of similar kind and quality, without deducting for depreciation. This means if your home or personal belongings are lost or damaged, the insurer covers the cost to restore your property to its current condition using new materials, helping you recover fully without out-of-pocket expenses for wear and tear. It provides more comprehensive protection compared to actual cash value policies, which account for depreciation.