Replacement Cost Clause

Replacement Cost Clause,

Replacement Cost Clause: What is the Meaning of Replacement Cost Clause?

  • The replacement cost clause is an insurance contract clause that states that in the event of a loss, the full replacement value of the item will be refunded. The replacement price is very different from the actual cash price. The actual cash value is for wear and tear, but there is no replacement value. Therefore, if your insurance policy includes an alternative cost clause, you will be compensated for the actual purchase price of the asset, in addition to the loss of the asset value. .

Literal Meanings of Replacement Cost Clause

Replacement:

Synonyms of Replacement

replacing, renewal

Cost:

Meanings of Cost:
  1. (For an item or action)) Payment is required (a fixed amount of money) before it can be obtained or realized.

Synonyms of Cost

put a figure on, toll, sell for, fare, estimate the cost of, evaluate, charge, value, be, put a price on, put a value on, asking price, levy, hire charge, fee, market price, come to, tariff, fetch, estimate the price of, rental, be valued at, selling price, amount to, be priced at, price

Clause:

Meanings of Clause:
  1. Units of grammatical organization just below the sentence in classification and traditional grammar, which must contain an article and a prediction.

  2. Articles, terms or reservations are specific and different in agreement, law or agreement.

Sentences of Clause
  1. From the above sentence, both clauses were added to the sequence without any assembly.

  2. Contracts usually choose the terms of the law that define the applicable law.

Synonyms of Clause

term, heading, group of words, passage, item, part, subsection, phrasal idiom, wording, idiom, paragraph, note, construction, turn of phrase, point, section, idiomatic expression, word group, article, locution, set phrase, phrasal verb, clause, expression