What Does 100 Replacement Cost Mean For Insurance. Replacement cost insurance is a coverage option for property insurance policies, especially homeowners insurance. A recent post, insurance agents and determining coverage limits for buildings, generated a number of very interesting comments about the differences between replacement cost value of a building and the reconstruction value of a building.there is a difference between the two values and it is a big issue.
Inform your insurer if you have upgraded or improved your home,. If you buy a new vehicle, the value of the car drops as soon as you drive it off the lot. In other words, it is the cost of purchasing a substitute asset for the current asset being used by a company.