MLchartDataset catalogue

Functional replacement cost

Term · Insurance and risk management · MLC-T-INS-001610

A method of property valuation in insurance that pays for the cost to replace damaged property with less costly, but functionally equivalent, materials or construction. This approach is used when replacing old or obsolete property with identical materials would be impractical or excessively expensive. It aims to restore the property's utility rather than its exact original form.

Table 1. Record
IdentifierMLC-T-INS-001610
FieldInsurance and risk management
SubjectPersonal Lines
Record as JSON 
{
  "id": "MLC-T-INS-001610",
  "term": "Functional replacement cost",
  "field": "Insurance and risk management",
  "definition": "A method of property valuation in insurance that pays for the cost to replace damaged property with less costly, but functionally equivalent, materials or construction. This approach is used when replacing old or obsolete property with identical materials would be impractical or excessively expensive. It aims to restore the property's utility rather than its exact original form.",
  "subject": "Personal Lines",
  "url": "https://mlchart.com/terminology/insurance/functional-replacement-cost/"
}

Record 1,489 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.