Your four-year-old large-screen television might cost $700 to replace today.If it has depreciated 10 percent per year, the insurer will pay you $420 in the event it is stolen or destroyed this year.You will have to find another $280 if you want to replace it.Identify the endorsement that can protect you from this unfavorable event.

Question

Quizplus · Accepted Answer

The personal property replacement cost endorsement allows you to replace the stolen or destroyed item at today's cost, without considering depreciation. This means you would be covered for the full $700 to replace your television, rather than just the depreciated value of $420.

Your Four-Year-Old Large-Screen Television Might Cost $700 to Replace Today