Replacement Cost

Replacement cost is the cost to construct or replace, at one time, an entire building of equal quality and utility.  Modern materials and current methods, designs, and layouts are used for replacement.  Replacement cost does not take into consideration improvements necessary to conform to changed building codes, demolition, debris removal, site accessibility or site work, reuse of building components or services, overtime, bonuses for labor, soft costs, extraordinary fees, premiums for materials, or other contingencies.  For insurance purposes, the prices used for labor, materials, overhead, profit, and fees are those in effect immediately prior to the loss.