Church leaders typically encounter the following insurance terms. Here are their meanings:
Actual Cash Value—The cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example, 20-year-old church pews will not be replaced at current full value because of two decades of depreciation. In some instances, artistic or antique property may appreciate over time. To receive full coverage, such items must be specifically scheduled in a policy.
Appurtenant Structures—Includes additional buildings on the same property as the principal insured building. Most property insurance contracts cover appurtenant structures.
Business Personal Property (Contents)—As distinguished from personal property, business personal property includes items such as furniture and fixtures, machinery, stock, manufactured or raw goods, and personal property owned by the insured and used in the business while located within 100 feet of the premises.