That's ruined too. But here's the good news. If you've got home or renters insurance, you're loss would probably be covered. First, you may need help speaking the language. When people in the business talk about insurance, they usually use two important terms Peril and Risk .
Risk is the chance of loss.
Another important point to understand is there are two ways a loss to your property can be settled. Usually they're referred to as Actual Cash Value and Replacement Cost Coverage . If you signed up for Replacement Cost Coverage , you'll receive the amount it would cost for you to replace the damaged property with the same kind of goods, brand new. Here again, the total amount you'd be reimbursed is subject to the terms and conditions of your policy. Lastly, realize you have Deductibles and Limits on your policy.