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Managing the Complexities of Replacement Cost Coverage (JLL 05/26)

Vol. 63 No. 6

Posted 5/6/26

After the last couple of years of California wildfires, large snow storms, and other extreme weather events throughout the United States, it’s a good time to revisit the calculation of replacement cost under policies insuring against loss or damage to property. The concept of replacement cost — sometimes referred to as “new for old” — seems simple, but issues often arise over the calculation and various policy terms and conditions.

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