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This episode is brought to you by the Financial services school. specializing in educating insurance professionals. Insurance time has come around again and youre going through your insurances. In doing so you see an option to either insure for replacement cost or indemnity value. Now I know Im going to sound like a broken record but this could make a huge difference can claim time. So whats the difference between replacement and indemnity value lets explain! Indemnity value is designed to put you in the same position you were in prior to the loss. This means if you have a piece of equipment that several years old depreciation is going to be taken into account when settling the claim. And this can easily put you in a position where youre left with a cheque from the insurer that is not large enough to purchase you a new piece of equipment for example: Your 10 year old roof is destroyed by hail. The insurer is going to come out