What is Functional Replacement Cost?

With Functional Replacement Cost, after a partial claim you will receive today’s building materials. For example, plaster walls might be replaced with drywall. Or, individually hand-laid oak floor boards might be replaced with oak laminates. You will receive materials similar to what can be bought at Menard’s or Home Depot. After a total loss, you will receive the insurance amount or the market value of the dwelling, whichever is LESS.