Replacement value

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Replacement value

Current cost of replacing the firm's assets.

Replacement Value

The cost of replacing an asset in the case that it is damaged or destroyed. That is, the replacement value changes according to the market value of the asset. An individual or company may buy a replacement cost insurance policy to cover the replacement value. It is also called the replacement cost.
References in periodicals archive ?
For example, average replacement values can be assessed for deviation from industry averages by construction type for a specific geographic area.
The Program will enable Fireman's Fund to support its market-leading landscaping insurance program by establishing replacement values for the trees and shrubs on a property using HMI's patented valuation system.
A product designed to gauge home replacement values has recently been made available to insurers by Simultaneous Solutions.
Frankly, we just don't see many practical obstacles to assigning current replacement values to the ending inventory.
Another aspect to this issue involves finding authoritative sources to help directors estimate their full replacement values.
SEG-SITE can be used to determine replacement values for standard, unusual or complex buildings, Capell says.
The taxpayer supported its argument with expert testimony from a computer vendor that the replacement values of the VAX 8550 computers were considerably less than the assessed value.
The challenges insurers face in maintaining up-to-date replacement values are well known in the industry," said Chris Harris, Chief Underwriting Officer at Montpelier Re.
Nine out of 10 commercial properties analyzed by AIR had replacement values, which is the full cost to replace a building in the event of total loss, less than the amount estimated using a standard engineering-based cost-estimation process, the report stated.
Insurance policies often are based on replacement values and/or actual cash value.
However, the increased cost is due to the additional insurance that must be purchased for the difference between replacement values and depreciated values.
In addition, many organizations now require that techniques for de-identifying test data provide valid replacement values to ensure accurate and reliable test results.