This means that only the causes of loss listed in the policy section are covered. The coverage is also subject to limitations and exclusions. Types of property having significant value, such as jewelry, fine arts, collectibles, etc., may require special protection. A and B is usually granted on either an actual cash value or a replacement cost basis. Actual cash value is defined as replacement cost minus depreciation.
Replacement cost is the actual cost to replace the structure, regardless of depreciation.
Check your policy to see which type of coverage you have. Coverage under section C is usually provided on an actual cash basis. Remember that this is merely an introduction to complex policy coverages. Be sure to contact your agent for detailed insurance information. Please watch for Part Two of this topic which discusses other, typical homeowner policy coverages.