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Insurance

Replacement cost

When discussing personal property and dwelling property insurance, we must understand the concept of replacement cost coverage. This type of insurance provides the full amount needed to replace damaged property, without considering depreciation. However, it is important to note that this coverage is limited by the maximum amount stated on the policy's declarations page. In simpler terms, this means that the insurance company will cover the cost of replacing damaged property, up to a certain limit. It is imperative to carefully review the declarations page to ensure that the coverage amount is sufficient for your needs.
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