does property replacemnt value consider rise in marketvalue?

by Guest » Mon Jan 28, 2013 11:14 am
Guest

How the replacement value is calculated for business property? Does it take inflation or rise in property value into account?

Total Comments: 2

Posted: Mon Jan 28, 2013 01:44 pm Post Subject:

Replacement cost is what it would cost to replace an item at the time of the loss... with no depreciation. SO it does consider an increase in value/cost but it also considers a decrease. It might cost more now to replace something (a roof lets say) or it might cost less (for an LCD TV).

Posted: Tue Jan 29, 2013 02:22 pm Post Subject:

yes, it does take rise in property value into account.

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