Guaranteed replacement value is when you are guaranteed that the item will be replaced even if it costs more. The consideration of depreciation will not be applied.
This type of coverage can be available on certain types of property. You will see it on a homeowner's policy and there is quite a process to get this put into place. Refer our article under "Guaranteed Replacement Cost" for more details on the homeowner policy and requirements.
You can also get this type of coverage for certain items such as a travel trailer. You would consider purchasing this coverage rather then have a stated amount that could not be exceeded.
Discuss your options with your agent or broker. Any time you can get a guarantee and no extra charge it is certainly worth considering.
Guaranteed Replacement Value