Which type of coverage will replace damaged or destroyed property with the equivalent at current cost?

Question

Sophie Small

Social Studies

13 October, 03:07

Which type of coverage will replace damaged or destroyed property with the equivalent at current cost?

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Answers (1)

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Brooke · Answer 1

Replacement cost

Explanation:

Replacement cost, also known as replacement value, implies the updated cost necessary to replace a current asset or item with another of the same characteristics and usefulness. This object loss or damage can also be compensated with money, and in general, its cost is higher than the original object's value.