What term describes the cost incurred to replace damaged property without deducting for depreciation?

The term that describes the cost incurred to replace damaged property without deducting for depreciation is "Replacement cost." This concept refers specifically to the amount it would take to replace an asset or property with a new one of similar kind and quality, thereby restoring it to its original condition without any consideration of its age or wear.

Replacement cost is essential in insurance contexts since it ensures that policyholders can recover the full amount necessary to replace their property fully, making them whole again after a loss. This is particularly relevant in property insurance policies, where understanding the distinction between replacement cost and other valuation methods, such as actual cash value, is critical for policyholders to make informed decisions about their coverage options.