Personal property insurance is a term that encompasses several different types of insurance that vary by the kind of property you are insuring:
- Rental Property
- Personal liability umbrella
Types of Coverage:
All Risk (also called Comprehensive Coverage or open perils coverage) offers broad protection and covers all perils unless they are specifically excluded by the policy. One type of exclusion would be floods.
Named Perils (also called Specified Perils Coverage) offers more specific protection than an all risk policy and covers only those perils specifically named under the policy. When purchasing a policy that provides named perils coverage only, it is important to make certain that the policy provides coverage for the kinds of perils that would most pertain to you.
Replacement Cost coverage pays for all necessary expenses associated with rebuilding or repairing damaged property, up to the policy limits, less any applicable deductible amount.
Actual Cash Value coverage factors in depreciation costs to your claim and pays you the costs to replace or repair the damaged property, less this depreciation and less any applicable deductible amount.