Common use of Property Not Eligible For Replacement Cost Clause in Contracts

Property Not Eligible For Replacement Cost. The value of the following property is based on its actual cash value at the time of the loss: a. household contents, except personal property in apartments or rooms furnished by "you" as landlord; b. manuscripts; c. objects of art, rarity, or antiquity; d. used or second-hand merchandise held for sale or in storage; and e. personal property of others. However, if personal property of others in "your" care, custody, or control is subject to a written agreement that specifies the extent of "your" liability for such property, the value of that property is based on the lesser of the following, unless Actual Cash Value is shown on the "declarations": 1) the extent of "your" liability as specified in the written agreement to which the property is subject; 2) the Replacement Cost "terms" set forth under item 1. of Valuation of Property Losses; or 3) the "limit" that applies to the lost or damaged property. If Actual Cash Value is shown on the "declarations", the value of personal property of others is based on its actual cash value at the time of the loss or the extent of "your" liability as specified in the written agreement to which the property is subject, whichever is less. Actual cash value includes a deduction for depreciation.

Property Not Eligible For Replacement Cost. The value of the following property is based on its actual cash value at the time of the loss: a. household contents, except personal property in apartments or rooms furnished by "you" as landlord; b. manuscripts; c. objects of art, rarity, or antiquity; d. used or second-hand merchandise held for sale or in storage; and e. personal property of others. However, if personal property of others in "your" care, custody, or control is subject to a written agreement that specifies the extent of "your" liability for such property, the value of that property is based on the lesser of the following, unless Actual Cash Value is shown on the "declarations":; 1) the extent of "your" liability as specified in the written agreement to which the property is subject; 2) the Replacement Cost "terms" set forth under item 1. of Valuation of Property Losses; or 3) the "limit" that applies to the lost or damaged property. If Actual Cash Value is shown on the "declarations", the value of personal property of others is based on its actual cash value at the time of the loss or the extent of "your" liability as specified in the written agreement to which the property is subject, whichever is less. Actual cash value includes a deduction for depreciation.