Replacement Value vs Actual Cash Value for New Brunswick Renters
FCNB explains that actual cash value reflects depreciation while replacement value is designed to cover the cost of replacing covered property without ordinary depreciation in the same way. The valuation basis can materially change a renter's contents settlement.
What to know
Confirm the current lease, Residential Tenancies rules and policy wording before applying this point to a specific rental.
Confirm the current lease, Residential Tenancies rules and policy wording before applying this point to a specific rental.
Confirm the current lease, Residential Tenancies rules and policy wording before applying this point to a specific rental.
Confirm the current lease, Residential Tenancies rules and policy wording before applying this point to a specific rental.
Cheap old items can be expensive to replace
A renter may own furniture or electronics with low second-hand value but high current replacement cost. That gap is the practical reason to understand the valuation basis before a loss.
Special limits can still apply
Jewelry, bicycles, collectibles, business equipment and other categories may have special limits or conditions even under replacement-value coverage. Review the contract rather than relying only on the headline valuation method.
Inventory first, limit second
List the rooms, major items and approximate replacement prices before deciding how much contents insurance is appropriate. A documented estimate is more defensible than guessing after a claim.
Verify the current New Brunswick rule
Lease requirements, security-deposit procedures and insurance wording can change. Use the official source below before making a rental or claim decision.
FCNB — Home and Tenant Insurance →