Endorsements & Optional CoveragesPregunta 436 de 474
The personal property replacement cost endorsement changes how contents losses are settled, from:
a.Replacement cost to actual cash value
b.Named perils to an open-perils basis
c.A stated amount to fair market value
d.Actual cash value to replacement cost
Explicación
Without the endorsement, personal property is settled at actual cash value, which is replacement cost less depreciation for age and wear. The endorsement pays the cost of new property of like kind and quality, subject to the policy conditions, so a ten-year-old sofa is replaced rather than depreciated. The endorsement changes valuation, not the perils insured, so the named-perils answer describes a different change.
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