When evaluating items with Guaranteed Replacement Cost (RCV) coverage, should I consider the retail price or the clearance price for sale items, such as clothing? I’m uncertain which value to use. Thank you!
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When assessing content with replacement cost value (RCV) coverage, you should use the replacement cost of the item at its current price, which means you would typically refer to the retail price rather than the clearance price. RCV coverage aims to ensure that you can replace the item with a new one of similar kind and quality, so it’s important to consider the cost of a comparable item at its regular retail price.
However, if you are purchasing a new item to replace the cleared item and the clearance price reflects the market value, that might be a valid consideration, but it could depend on your insurance policy specifics. It’s always best to check your policy details or consult with your insurance provider to ensure you fully understand how replacement costs are determined.