What is 'replacement value?'
A) the current cost of returning a physical asset to its pre-damaged condition
B) the value one subjectively places on the loss of human life
C) the amount you charge FEMA for your direct losses
D) None of the above

Question

Quizplus · Accepted Answer

Replacement value refers to the current cost of returning a physical asset to its pre-damaged condition. This is often used in insurance policies or when assessing the value of property damage. B and C are incorrect as they do not accurately define replacement value.

What Is 'Replacement Value