Originally Posted by DMC707

Replacement cost insurance means initially theu pay you the replacement cost of the bike , -- minus age related depreciation and minus the deductible. When you actually replace the bike with an equivalent replacement, -- any depreciation with held is payable back to you

For instance

2005 Ritchey Breakaway ---- assume a replacement cost of $3500 with a nice kit ---
11 years of depreciation is deducted - basically getting it down to FMV -- so, say, --- $2000 value
Then the deductible is subtracted -- lets assume $500
Your net claim before depreciation is recovered is $1500 ---

Provided the item is replaced with an equivalent new item, -- you recover your $1500 depreciation on the tail end after providing documentation that you replaced the item

If it is an actual cash value policy for personal property and contents, -- you get paid $1500, and good luck

Originally Posted by Wanderer

I have a cousin who is my agent, and I thought I was buying replacement coverage - but come to think of it, it was insured for a stated set dollar amount. It really didn't cost very much more to do it this way.