What percentage of actual replacement cost must be insured to have replacement cost coverage in all risk TDP?

To have replacement cost coverage under an all-risk policy, particularly within a Total Disability Plan (TDP), the insured must typically insure at least 80% of the actual replacement cost of the property. This threshold is a common requirement in property insurance policies to ensure that the insured is adequately covering their assets.

When this percentage is met, it allows the policyholder to claim the full cost of replacing damaged or lost property without applying a depreciation deduction, which is essential for keeping the insured value in line with the actual needs of replacement.

If the insured only covers a lower percentage, they risk being penalized with reduced payouts in the event of a loss. This 80% rule is designed to encourage insureds to carry sufficient coverage and reduce the likelihood of underinsurance, which protects both the insurer and the policyholder in the long run.

It's valuable to note that some policies might vary in their exact requirements or may have different stipulations for specific coverages, but the 80% mark is a widely recognized standard within the industry.