What is defined as the cost to repair or replace property using new materials with no deduction for depreciation?

The term that refers to the cost required to repair or replace property using new materials without accounting for any depreciation is known as "replacement cost." This concept is central to various insurance policies, as it ensures policyholders can restore their property to its original condition following a loss. Unlike actual cash value, which factors in depreciation and represents the current worth of an item, replacement cost focuses solely on the current cost of acquiring a new equivalent item, providing more comprehensive coverage for the insured property. This approach emphasizes the importance of maintaining adequate coverage levels to ensure that any repairs or replacements can be made without additional financial burden to the policyholder.

Other terms like insured value and market value refer to different valuation principles and methods, which may not necessarily align with the notion of replacing property at current costs using new materials.