What is the difference between full replacement value and depreciated replacement value?
HAZUS uses “replacement costs” for buildings in it’s inventory and analysis. The full replacement value is the engineering cost to replace or repair an insured building. This is not the appraised value or market value and does not include the land value. The depreciated replacement cost is the actual cash value for replacing for replacing/repairing an insured building or contents. This tends to more closely reflect the payout by NFIP because age and/or quality of the building is a factor.
