Which endorsement ensures that the contents are not valued on an actual cash value basis?

The endorsement that ensures contents are valued on a replacement cost basis rather than an actual cash value basis is known as the personal property replacement cost endorsement. This means that if a covered loss occurs, the insurance will pay for the cost to replace the damaged or destroyed property with new items of like kind and quality, without deducting for depreciation.

In contrast, the actual cash value considers depreciation, which means that the payout amount would be based on what the property was worth at the time of loss, factoring in its age and condition. This can lead to significantly lower compensation for policyholders.

The other options are either not specific to personal property or do not exclusively address the valuation basis described. For example, the replacement cost endorsement generally applies but can be broader and not focused solely on personal property, whereas guaranteed replacement cost typically applies to the structure itself rather than contents. Thus, the personal property replacement cost endorsement specifically offers the clarity and assurance that contents are valued at replacement cost.