Plain-English meaning
A valuation approach based on the cost to replace or rebuild covered property with comparable materials, without deducting depreciation, subject to policy terms.
Why it matters
It may provide more recovery than actual cash value but can require adequate limits and completed replacement.
Where you may see it
Dwelling and contents provisions, endorsements, estimates, and claim settlement letters.
What to verify
Which property qualifies, limit, coinsurance requirement, timing, proof of replacement, and roof exceptions.
Do not confuse it with
Market value, guaranteed replacement cost, and actual cash value.
For policy-specific meaning, read the definition and related provision in the issued policy.