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[thewheel82]

You can most likely choose to insure for "Agreed Value" which will not exceed replacement cost.

This lets you choose how much you want to get back in the event of loss however the insurance company will not be on the hook for any more than what it would actually cost to replace. As someone mentioned insuring the Timex for $10K, insurance companies put the "...up to replacement cost" verbiage in place to protect them as the goal of insurance is to put you back to where you started before the loss occurred.

Insuring a new GMT BLRO at an agreed value of $17K is acceptable as that would be the cost on the secondary market to replace even though it exceeds MSRP.

Insuring a Timex at an agreed value of $10K is not acceptable as you can easily replace with a brand new model for $100.

This concept comes into play quite often in the oilfield industry during the peaks and valleys of oil pricing as equipment can either be very scarce and expensive at certain times or available for cheap at liquidated pricing at other times.

I am a commercial insurance broker for property focusing on large corporations however the concept is the same.