The cost involved to build an exact duplicate of an existing structure is called what?

• A. Reproduction cost
• B. Replacement cost
• C. Appraised value
• D. Insured value

Answer: (A)

When estimating what it costs to recreate a structure exactly, you’re looking at reproduction cost. This is the amount needed to build an exact replica of the original building, using the same design, dimensions, materials, and construction methods, based on current prices. It’s a concept often used in insurance to ensure the exact duplicate can be rebuilt after a loss.

Replacement cost, on the other hand, would cover building a similar structure that serves the same purpose and resembles the original but isn’t an exact copy, possibly using newer materials or modern design. Appraised value is a valuation of the property’s worth, and insured value is the amount covered by the policy, which can be based on one of these methods depending on the policy terms.