What is defined as the replacement cost of lost or damaged property minus depreciation?

The term that refers to the replacement cost of lost or damaged property minus depreciation is known as Actual Cash Value. This concept is essential in insurance as it determines how much an insurer will pay for a claim involving property loss.

Actual Cash Value takes into account not just the cost to replace the property but also factors in depreciation, which reflects the reduction in value due to age, wear and tear, and obsolescence. This allows for a more accurate assessment of what the property is worth at the time of loss, rather than merely the cost to replace it with a new item.

In contrast, other terms such as Market Value, Replacement Cost Value, and Fair Market Value do not align with this definition. Market Value pertains to the price that a property would sell for in the current market, Replacement Cost Value refers to the cost to replace the property without regard to depreciation, and Fair Market Value refers to the price that a willing buyer would pay to a willing seller in an open market, which also does not factor in depreciation. Therefore, Actual Cash Value is the correct choice as it encapsulates the essence of value deduction based on depreciation in the context of property insurance claims.