Property Valuation
Reproduction cost vs. replacement cost in Indiana appraisals: replacement cost refers to:
AThe cost to build an exact replica of the original structure
BThe cost to build a structure with equal utility using current materials and methods✓ Correct
CThe cost of replacing all personal property in the home
DThe insurance replacement value of the building
Explanation
Replacement cost uses current materials, methods, and design to build a structure of equal utility — not an exact replica. Reproduction cost is the cost to build an exact duplicate with original materials and construction methods.
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