What happens to an item that is judged as functionally obsolete?

When an item is judged as functionally obsolete, it implies that the item is no longer deemed effective or useful for its intended purpose due to advancements in technology, changes in consumer preferences, or other factors. Therefore, such an item is typically replaced with a functionally equivalent item that meets current needs and standards.

This process of replacement reflects the value placed on functionality in today's market. Simply valuing the item based on its current retail price or paying it at market value does not address the fundamental issue of obsolescence. Insurance based on depreciated value also does not provide a solution to the need for a functional replacement. Instead, opting for a functionally equivalent item ensures that the original functionality is restored or improved, effectively addressing the obsolescence issue and aligning with modern standards.