In older structures, or where building materials may be either obsolete or not legally available due to local laws and ordinances, or because materials have been deemed unsafe, it can often be difficult to find material which duplicates that which was damaged or destroyed in a loss. Typically, the scope of loss under a RCV policy assumes that replacement of damaged building materials, which existed at the time of loss, will be replaced with the same material, assuming that the material is available. Property insurance policies rarely, if ever, define the term “like kind and quality.” It is generally accepted that in the valuation of most property insurance losses, Replacement Cost (RCV) is defined as the cost to repair or replace property, at the date and time of loss, with materials of like kind and quality. Replacement Cost and Like Kind and Quality in Real Property Losses
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