Replacement value for settling property insurance claims is less costly than the actual cash value method.

Name: Replacement value for settling property insurance claims is less costly than the actual cash value method.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Replacement value typically costs more than actual cash value because it covers the cost of replacing the item with a new one, without deducting for depreciation, whereas actual cash value takes into account depreciation, resulting in a lower payout.

Replacement Value for Settling Property Insurance Claims Is Less Costly