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Functional Replacement Cost Loss Settlement
Last updated: February 13, 2025
When evaluating landlord insurance for your rental property, you’re likely to encounter a variety of settlement options. These determine how a claim is paid out if the building or property sustains damage or total loss. While most investors have heard of “replacement cost” or “actual cash value,” there is another option called **functional replacement cost (FRC)**—a nuanced coverage that can significantly affect the outcome of a claim.
