This method subtracts some allowance from new replacement cost, for physical depreciation, economic obsolescence or both. The reasoning behind the concept is that the business will gain if a property is replaced with a new property. The main difficulty is measuring physical depreciation and economic obsolescence. (i) Physical depreciation is the result of age plus wear and tear. (ii) Economic Obsolescence is illustrated by change in fashion or development of new, more efficient machinery. For valuing personal property, one must be careful to include costs for transportation, installation etc.

In addition to usual hospitalization for a specified minimum number of hours the insurers are also coming up with variety of new coverage of items such as transplantation, hospitalization expenses of organ donor, cost of artificial limbs, cost of pacemakers, cost of hemodialysis, ambulance charge, pre and post hospitalization, periodic health checkup, cost of surgeries done under day care, maternity, waiver of conditions relating to minimum number of beds etc.

Once the benchmark of property policies, it was adopted for use in all but a handful of states. The familiar provisions of its 165-numbered-lines survive in Insurance Service Office property policies as well as in independently produced forms.

A basic contract for fire insurance that was widely used in almost all states. The policy covered losses due to fire, as well as lightening, and was a predecessor to modern forms. This policy is no longer widely used, but still exists in some states.

A newly purchased vehicle, which the insured must notify the insurer about within 30 days of purchase. Vehicles purchased during the term of the policy receive some coverage automatically under the policy.

An extension of coverage within a multiperil policy to new property purchased or added by the Named Insured. Normally such an extension has a value limit and a time period during which the Named Insured is expected to report the additional property and pay the appropriate premium.

An insurance of limited health insurance often sold by newspapers to build or conserve circulation.

A limited health insurance policy that is sold by newspaper advertisements with the aim of increasing circulation.