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functional replacement cost provision or endorsement

A functional replacement cost provision or endorsement changes the valuation basis otherwise applicable (actual cash value (ACV) or replacement cost (RC) value) to valuation at the cost to replace the damaged or destroyed property with property that serves the same function.

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functional replacement cost provision or endorsement

A functional replacement cost provision or endorsement changes the valuation basis otherwise applicable (actual cash value (ACV) or replacement cost (RC) value) to valuation at the cost to replace the damaged or destroyed property with property that serves the same function.

Additional Information


Used when replacement of damaged property with substantially identical property is either impossible (perhaps due to technological change) or unnecessary.