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Replacement cost theory means the amount it would cost to replace an asset at current prices. If the cost of replacing an asset in its current physical condition is lower than the cost of replacing the asset so as to obtain the level of services enjoyed when the asset was bought, then the asset is in poor condition and the firm would probably not want to replace it...
In short the theory basically argues that old companies should be valued on the basis of the amount of money which would be required to create another such company...
What else can I help you with?
What is the estimated dwelling replacement cost for a property valued at 150,000?
The estimated dwelling replacement cost for a property valued at 150,000 is typically around 120,000 to 180,000.
What is the estimated cost to replace a property with a similar kind and quality, also known as the expanded replacement cost?
The estimated cost to replace a property with similar kind and quality, also known as the expanded replacement cost, is the amount of money needed to rebuild or repair the property to its original state in case of damage or destruction.
What is replacement cost coverage and how does it differ from actual cash value coverage?
Replacement cost coverage is an insurance policy that pays for the cost of replacing damaged or destroyed property with new items of similar kind and quality. This coverage does not take depreciation into account. On the other hand, actual cash value coverage takes depreciation into consideration when determining the value of the damaged or destroyed property, resulting in a lower payout compared to replacement cost coverage.
Can you explain how extended replacement cost works for insurance coverage?
Extended replacement cost is a type of insurance coverage that provides additional protection beyond the limits of a standard policy. In the event of a covered loss, such as damage to your home, extended replacement cost coverage will pay for the full cost of repairing or rebuilding your property, even if it exceeds the policy limit. This can help ensure that you are fully covered in the event of a major disaster or unexpected increase in construction costs.
What is replacement investment?
replacement invesment is process of discontinuing form the existing plan and starover with a new invesment plan to generate more revenues to minimize the cost for the company
You have insurance on your home but no replacement insurance What does this mean?
HOAIt means our policy is based on actual value rather than replacement cost. It means that the insurance company is not guaranteeing you the replacement of your home if it burns down. For example, your insurance policy limit is $200,000, but the cost of replacing your home is $210,000, if you had a replacement policy, the insurance would pay for the replacement of your home despite the fact that your insurance limit is only $200,000. However, the insured value at the time of the loss is usually required to be at least 80% of the replacement cost before your policy is covered on a replacement cost basis.
Guaranteed replacement cost in a homeowner's insurance policy means that the insurance company?
right, Guarantees it.
What is verified replacement cost for the dwelling?
I am looking for the answer to verified replacement cost
Do you have to rebuild with replacement cost ins?
You make the decision to rebuild or not. However, per the terms of the replacement cost endorsement, if you choose not to rebuild then the company will pay you the actual cash value of the damage. If you rebuild, the company will pay replacement cost. No replacement, no replacement cost.
What is replacement value?
This is defined as the cost to repair without regard to depreciation. All the homeowners policies that I have seen have a cap of 4 time the ACV or the policy limit, whichever is less. When you have a full replacement cost policy you also have the requirement to carry full replacement cost value on your policy at 100%. What this means is that if you don't have enough coverage to pay the full replacement cost, then you will be penalized on every claim whether large or small. For this reason, you only want to carry full replacement cost if you are sure that you have enough coverage to avoid the penalty.
What does no replacement cost in your renters policy mean?
If your policy indicates that there is no replacement coverage then that means you will be compensated (paid) based on the current depreciated value of your property in the event of a claim.
What is the cost for a car window replacement?
The cost of a car window replacement will vary greatly. The cost of the replacement will depend upon the model of the vehicle, and the specific type of glass that needs to be replaced. Car window replacement can cost up to $175 or more.
Can you get a replacement theory test paper?
yes...............
What is replacement value coverage?
This is defined as the cost to repair without regard to depreciation. All the homeowners policies that I have seen have a cap of 4 time the ACV or the policy limit, whichever is less. When you have a full replacement cost policy you also have the requirement to carry full replacement cost value on your policy at 100%. What this means is that if you don't have enough coverage to pay the full replacement cost, then you will be penalized on every claim whether large or small. For this reason, you only want to carry full replacement cost if you are sure that you have enough coverage to avoid the penalty.
What does a total shoulder replacement cost?
The average cost of shoulder replacement surgery is $10,000.
What is the average replacement cost to rebuild a home in NJ?
can you tell me what the replacement cost to rebuild in nj is
What is the cost for a wheel bearing replacement?
The cost for a wheel bearing replacement will vary based on the brand of the car. For example, a Lexus dealership quotes cost averaging about $800 for a replacement.
