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Types of Property Insurance Coverage

Types of Property Insurance Coverage

Before you go to an insurance agency in Rochester, Minnesota to obtain property insurance for protection, it is a must that you first have the basics down. Be aware of what this insurance is all about. It is imperative that you know what particular coverages the said policy has to offer.

Property insurance is not a single insurance policy. In fact, it is a series of policies that may include earthquake insurance, homeowner’s insurance, flood insurance, renters insurance, and the likes. It offers either liability coverage or property protection to the insured property.

When you have a property insurance policy, the owner will not have to worry about any perils that may damage the insured property. These perils include but are not limited to hail, fire, lightning, and wind. Some policies may even cover the insured property against theft and vandalism.

If you are getting property insurance in Minnesota, understand what coverage you are entitled to. Basically, property insurance coverage can be divided into three types. These types are:

  • Replacement cost
    This typically covers the cost of replacing or renovating a property at an equal value.
  • Extended replacement cost
    This coverage pays more than the coverage limit (no more than 25%) if the construction cost has increased.
  • Actual cash value
    This coverage pays the replacement cost minus the value of depreciation.

Safechoice Insurance Agency is an independent insurance agency that you can consult with if you are looking for the right policy to secure your future. Be sure to book an appointment with us to discuss your needs.

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