What refers to the cost to repair or replace property using new materials without any depreciation deduction?

The concept being referred to is Replacement Cost. This term is specifically defined as the amount it would take to replace property with new materials of similar kind and quality, without accounting for any depreciation. It reflects the cost to bring the property back to its original condition using current prices for labor and materials.

This valuation method is important in insurance policies, particularly in determining how claims are settled after a loss. By using Replacement Cost coverage, policyholders can ensure they are adequately compensated to rebuild or repair their property to its pre-loss state, thereby eliminating the financial burden of having to fund the cost differential associated with depreciation.

Other options do not accurately convey this definition. For instance, Market Value refers to the price that property would sell for in the current market and can be affected by various external factors, including location and demand, which is different from replacement costs. Reconstruction Cost generally implies a more specific process of rebuilding structures, which may or may not consider the cost of new materials alone. Current Value can be ambiguous and is often context-sensitive, lacking the explicit focus on replacement without depreciation that Replacement Cost provides.