Coverage
What Is Replacement Cost?
Replacement cost coverage pays to repair or replace damaged property with new materials of similar kind and quality, without deducting depreciation. It usually costs a bit more than actual cash value coverage but pays more at claim time.
Many Ontario home policies offer replacement cost on the building and contents, sometimes with conditions (for instance, you may have to actually replace the item to collect the full amount). Compare it with actual cash value when choosing coverage.
Questions about Replacement Cost?
Our Ontario brokers can explain how it applies to your policy.
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Reviewed by Roughley Insurance Brokers Ltd. — licensed Ontario insurance brokers since 1945. Last updated May 29, 2026. ← Back to the glossary