What type of endorsement can an insured use to cover old equipment?

The actual cash value endorsement is specifically designed to provide coverage based on the depreciated value of an insured item, which is particularly relevant for older equipment. When equipment ages, its value typically decreases due to wear and tear and obsolescence. This endorsement calculates the value by taking the replacement cost of the equipment and subtracting depreciation, thereby giving the policyholder a payout that reflects the item's current worth rather than its original purchase price.

This approach is often suitable for older equipment, as it acknowledges that such items will not have the same market value as newer versions. Hence, in situations where coverage for old equipment is necessary, the actual cash value endorsement effectively addresses the needs of the insured by providing a more accurate and fair compensation in the event of a loss.