What is replacement cost value?

The property coverage under the Sorority insurance program is written on a replacement cost value basis, which means that in the event a claim, the policy will pay the cost to repair or replace lost or damaged property with property of comparable material and quality on the same or another site, and used for the same purpose, without deduction for depreciation, deterioration, and obsolescence. Conversely, property insurance policies are often written on an actual cash value basis, which means that the policy will pay for the replacement cost of an item minus depreciation, which, depending on the item, can often be a high deduction.