No policy covers everything and coverage is subject to the policy's limitations, deductibles, and exclusions. Law does not mandate property and casualty insurance coverage. It is a good idea to read your policy thoroughly and be familiar with your individual coverage benefits and limitations. Homeowners' insurance and renters' insurance come in several different forms. The number of perils you are insured against will affect the cost of your insurance.
Comprehensive coverage is the most common form of coverage.
Homeowners' insurance does not, in any case, cover loss from flood, earthquake, war, or nuclear accident. It is important to keep your coverage consistent with your needs and changes to your property. Many insurers require homeowners to insure their homes for at least 80 percent of the replacement costs in order to avoid a penalty for partial losses. If you are insured for actual cash value, the insurance company will pay you for a covered loss based on the value of the item or repair minus depreciation. If you are insured for replacement cost, the insurance company will pay you for a covered loss, based on the value of the item or repair without subtracting for depreciation.