Page 27 - Book1

Claim Your Insurance Lottery Ticket

property. It can also include limited coverage for property
alterations made by the renter.
4. Modified Coverage Form or HO-8: This type of policy, offered by
many insurers in Florida, was designed for older homes, which
typically have higher replacement costs than their market value.
HO-2 provides functional replacement, which implies
reconstruction with less costly materials that perform the same
function. This type of policy offers less coverage than the HO-2.
It may include theft coverage, but it is limited to $1,000 per
event.
5. Dwelling Form:This type of policy is used to cover risks that
might not be covered by homeowners insurance policy. In the
case of mobile homes, many insurance companies have
discontinued policies for these types of homes, but a dwelling
form can be issued to cover it.
There are essentially three levels of coverage.
Actual cash value
Actual cash value covers the cost of the house plus the
value of your belongings after deducting depreciation (i.e., how
much the items are currently worth, not how much you paid for
them).
Replacement cost
Replacement value policies cover the actual cash value
of your home and possessions without​ ​the deduction for
depreciation, so you would be able to repair or rebuild your
home up to the original value.
Guaranteed (or extended) replacement cost/value
The most comprehensive, this inflation-buffer policy pays
for whatever it costs to repair or rebuild your home—even if it's
more than your policy limit. Certain insurers offer an extended
replacement, meaning it offers more coverage than you
purchased, but there is a ceiling; typically, it is 20% to 25%
higher than the limit.

27