replacement cost

USAGE SUMMARY

The phrase "replacement cost" is correct and usable in written English.
It is typically used in financial or insurance contexts to refer to the cost of replacing an asset with a new one of similar kind and quality. Example: "The insurance policy covers the replacement cost of the damaged property, ensuring that the homeowner can rebuild without incurring additional expenses."

✓ Grammatically correct

News & Media

Academia

Science

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

"Replacement cost" coverage pays to replace the property at today's cost.

The New York Times

The family offered the replacement cost, $500.

The New York Times - Magazine

I don't know how much that hip replacement cost.

The New York Times

What if we valued nature at replacement cost?

The Guardian

The parents hinted at paying the $134.89 replacement cost.

The New York Times

"If they quote a realistic replacement cost, the price of the policy goes up," Mr. Garamendi said, "so they are motivated to keep the replacement cost down".

The New York Times

Such coverage, Mr. Mackoul said, should be on a "replacement cost" basis.

The New York Times

The replacement cost was $200 -- almost the original price of the entire bicycle.

The New York Times

Don't forget mundane items like clothes and linens, whose replacement cost can add up.

The New York Times

Those who want greater assurance, she said, can purchase a policy with "extended replacement cost" coverage.

The New York Times

"And everyone should insist they are insured for replacement cost coverage".

The New York Times

Expert writing Tips

Best practice

When discussing insurance policies, clearly distinguish between "replacement cost" and actual cash value to ensure readers understand the coverage they are getting.

Common error

Avoid using "replacement cost" interchangeably with market value. "Replacement cost" refers to the expense of replacing an asset with a new or similar one, while market value reflects what someone is willing to pay for it in its current state.

Linguistic Context

The phrase "replacement cost" primarily functions as a noun phrase, often acting as a subject or object within a sentence. According to Ludwig AI, this term is frequently used to describe the expenses of substituting an item or asset. This can be observed in numerous examples provided by Ludwig.

Expression frequency: Very common

Frequent in

News & Media

42%

Academia

38%

Science

20%

Less common in

Formal & Business

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "replacement cost" is a common and grammatically sound term, primarily used as a noun phrase in financial and insurance contexts. According to Ludwig AI, it refers to the expense of replacing an asset with a new, similar one. It’s important to distinguish it from actual cash value, which accounts for depreciation. The phrase appears frequently in News & Media, Academia, and Science, as shown by the examples. When writing about insurance or finance, be precise in defining "replacement cost" to avoid confusion. Alternative phrases include "replacement price", "rebuilding expenses", and "cost of replacing", depending on the specific context.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

replacement price

Replaces "cost" with "price", focusing on the monetary value required for replacement.

actual cost of replacement

Highlights that the cost considered should be the effective amount really spent to replace something.

cost of replacing

Rephrases the noun phrase into a gerund phrase, emphasizing the action of replacing.

substitution cost

Highlights the expense associated with substituting one item for another.

reinstallation cost

Specifies the cost related to installing a replacement item, suitable when installation is a significant factor.

cost to substitute

Expresses the expense of substitution emphasizing the action.

repair or replacement expenses

Expands to include the possibility of repair as an alternative to replacement, covering a broader scope of actions.

procurement cost for replacements

Emphasizes the expense related to procuring replacements, useful in a business context.

restoration expenses

Shifts the focus from simple replacement to restoring something to its original condition.

rebuilding expenses

Specifies the expenses tied to rebuilding something, usually implying a larger scale or more complex replacement.

FAQs

How is "replacement cost" used in insurance?

"Replacement cost" in insurance refers to the amount it would take to replace damaged or lost property with new property of similar kind and quality, without deducting for depreciation. Understanding this is crucial for adequate coverage.

What is the difference between "replacement cost" and actual cash value?

"Replacement cost" is the cost to replace an item at today's prices, while actual cash value factors in depreciation. Actual cash value is often lower. Understanding the difference is very important when assessing insurance needs.

What factors influence the "replacement cost" of a home?

Factors influencing a home's "replacement cost" include the size of the home, the quality of materials, labor costs, and local building codes. These costs can fluctuate based on location and market conditions.

What are some alternatives to the term "replacement cost"?

You can use alternatives like "replacement price", "rebuilding expenses", or "cost of replacing" depending on the context.