How much coverage would be provided under a standard homeowner's cash value policy which deems furniture to be fully depreciated in ten years,if your antique dresser from the 1860s is destroyed by fire? You purchased the dresser eleven years ago for $1300 and it was recently appraised at $2600,and you have an offer from an antique collector to purchase it for $3100.

Question

Quizplus · Accepted Answer

Under a standard homeowner's cash value policy, the coverage provided for items is based on their actual cash value at the time of loss, not their replacement cost or appraised value. Since the policy deems furniture to be fully depreciated in ten years, the dresser, being from the 1860s and purchased eleven years ago, would be considered fully depreciated, resulting in a coverage amount of $0.

How Much Coverage Would Be Provided Under a Standard Homeowner's