Types of Coverage and Definitions:
Actual Cash Value: This coverage pays you an amount equal to the replacement value of damaged property minus depreciation. Unless a homeowners policy specifies that property is covered for its replacement value, the coverage is for actual cash value.
Deductible: The portion of a covered loss that you agree to pay before the insurance company becomes responsible for payment under the policy. (A larger deductible usually means a lower premium.)
Dwellings and other structures. Homeowners insurance provides coverage for damage to your home and other structures on your property, such as detached garages or sheds.
Dwelling Improvements, Alterations, and Additions are covered for accidental damage to improvements you make in your unit for which your association's policy does not provide coverage.
Loss Assessment Coverage generally pays for your share of expenses for a covered loss, up to your policy limits, when your association requires an assessment on all unit owners for certain covered losses.
Personal Property protection provides protection against covered loss to household contents and personal belongings. Most homeowners Insurance policies set aside special coverage limits for movable personal property and categories of personal property, like jewelry, money or securities. You can increase your coverage limits for these and other possession by selecting optional coverages for your insurance policies.
Personal Liability coverages is needed in the event someone is injured on your property or you damage property that belongs to others.
Replacement Cost Coverage: In the event of a covered loss, you may be reimbursed for the cost you incur to replace many of your damaged contents with similar property, brand new. The total amount you'd be reimbursed is subject to the terms and conditions of your particular policy, including applicable deductible and coverage limits.
