Which of the following terms refers to property replacement without deducting depreciation?

The term that refers to property replacement without deducting depreciation is known as Replacement Cost. This concept is essential in insurance and property valuation as it indicates the amount needed to replace an asset with a similar one at current prices, without considering the worn-out value of the existing asset.

For policyholders, this means if a covered event occurs, they would receive a payout that allows them to replace their damaged or lost property with a new equivalent, ensuring they can recover the full value of what they had, rather than just the depreciated value. This approach provides better financial protection to the insured party in the event of a loss, making it a preferred choice for many.

Understanding this distinction is crucial in evaluating how insurance policies will reimburse individuals after a loss, differing significantly from concepts such as Actual Cash Value, which does account for depreciation.