MANAGEMENT

Detailed explanation-1: -Sometimes called “RCV", replacement cost value covers the amount of money it would take to replace your current home-if damaged or destroyed-with the exact same home or a similar home in today’s market.

Detailed explanation-2: -Replacement value coverage means that the contents of your home are insured for the amount it costs to replace them.

Detailed explanation-3: -The term replacement cost or replacement value refers to the amount that an entity would have to pay to replace an asset at the present time, according to its current worth. In the insurance industry, “replacement cost” or “replacement cost value” is one of several methods of determining the value of an insured item.

Detailed explanation-4: -Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. It equals the cost of replacing the property.

Detailed explanation-5: -Replacement costs are the cash outlay that the business has to pay to replace an old asset at the existing market price. The price charged to replace the old asset with the new one having the same value is the replacement cost.