Replacement value is used only by insurance companies and in very unique circumstances.

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Replacement value is a term used in insurance to refer to the cost of replacing an item with a new one of similar quality and function. It is typically used in situations where the insured item has been lost, stolen, or damaged beyond repair. Replacement value is not used in all insurance policies, and it is not always the same as the market value of the item.

Replacement Value Is Used Only by Insurance Companies and in Very