 When "replacement cost" coverage is used in a policy, a policy owner is reimbursed an amount necessary to replace the article with like kind and quality at current prices without any deduction for depreciation.
So that means if your two year old TV was damaged in a storm, if the model of your TV is still being sold then it is likely you will receive that same TV. If not however, then you would receive a newer TV that is very similar to the one you originally owned. Many companies require that if you want to have replacement cost coverage on your items that you have at least 80% of the property’s value covered at the time of loss.
 Yes, the purchase of a new mortgage protection term insurance policy is usually not required by the lender.
An existing policy, either term or cash-value life insurance can be used for many purposes, including paying off an outstanding mortgage loan balance in the event of the insured's death.
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