property and casualty insurance that replaces damaged property. Replacement cost contents insurance pays the dollar amount needed to replace damaged personal property with items of like kind and quality, without deducting for depreciation. Replacement cost dwelling insurance pays the policyholder the cost of replacing the damaged property without deduction for depreciation, but is limited by the maximum dollar amount indicated on the declarations page of the policy. In addition, if the property is deemed not to have been insured to 100% of its replacement cost, coverage of partial damage will be prorated according to the percentage of total coverage.
property and casualty insurance that replaces damaged property. Replacement cost contents insurance pays the dollar amount needed to replace damaged personal property with items of like kind and quality, without deducting for depreciation. Replacement cost dwelling insurance pays the policyholder the cost of replacing the damaged property without deduction for depreciation, but limited by the maximum dollar amount indicated on the declarations page of the policy.
