Functional Replacement Cost

Pays to rebuild with modern, functionally equivalent materials rather than matching costly obsolete ones — handy for older or ornate buildings.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.