Which factor is NOT considered when calculating the Replacement Cost of a property?

When determining the Replacement Cost of a property, the focus is on what it would cost to replace the property using current materials and labor, without taking into account any depreciation that the property may have undergone over time. Replacement Cost specifically refers to the current cost to replace the structure with a similar one, reflecting current prices for materials and labor.

Including depreciation would refer to the decline in value of the property due to factors such as wear and tear or age, which does not play a role in calculating how much it would cost to rebuild the property at present values. Therefore, depreciation is excluded from this calculation.

In contrast, the other factors mentioned—current market value, cost of materials, and labor costs for repairs—are all integral to determining Replacement Cost, as they directly influence the expenses needed to reconstruct the property as it currently stands.