What are the six categories typically covered by homeowners insurance?
What are the six categories typically covered by homeowners insurance?
Generally, a homeowners insurance policy includes at least six different coverage parts. The names of the parts may vary by insurance company, but they typically are referred to as Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability and Medical Payments coverages.
What are the 3 basic levels of coverage that exist for homeowners insurance?
Homeowners insurance policies generally cover destruction and damage to a residence’s interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.
What does 100 replacement cost mean for insurance?
Replacement Cost Coverage When you insure your home to 100% of its replacement cost value, some insurance companies will offer the benefit of extended replacement cost. This provision will pay beyond your policy limit should the amount at the time of loss not be adequate.
Which of the following is something that will not affect your homeowners insurance premium?
Which of the following is something that will not affect your homeowners insurance premium? Answer: A (The distance of the home from a school.)
Which is better replacement cost or actual cash value?
While actual cash value is cheaper, replacement cost provides better coverage since it includes the recoverable depreciation of your property.
