A property loss is settled on a replacement cost basis. This means the claim is paid:

A property loss is settled on a replacement

Multiple choice — select the best answer

AWithout deduction for depreciation
BAfter subtracting depreciation
CAt the item's salvage value
DAt the original invoice price only

✓ Correct answer: A. Without deduction for depreciation Replacement cost coverage pays to repair or replace damaged property with new property of like kind and quality, with no deduction for depreciation, subject to policy limits and any conditions.

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Topic: Property Insurance

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A property loss is settled on a replacement cost basis. This means the claim is paid:

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