Three Forms of Coverage
Basic Form
Special Form
Basic Form
Basic form, aka DP1, provides coverage on a named peril basis with these 11 named perils: Fire, Lightning, Explosion, Windstorm/Hail, Smoke, Aircraft/Vehicles, Riot/Civil Commotion, Vandalism, Sprinkler Leakage, Sinkhole Collapse, and Volcanic Action.
Broad Form
Special Form
Basic Form
Broad form, aka DP2, provides coverage on a named peril basis with the 11 named perils included in the Basic form plus 3 additional perils: Falling objects, Weight of Ice/Snow, and Water Damage (i.e. frozen pipes, broken water lines)
Special Form
Special Form
Special Form
Special form, aka DP3, provides coverage as an open peril basis. Unless the specific peril is excluded, the coverage is provided.
Three different ways to be compensated
Actual Cash Value
Functional Replacement Cost
Functional Replacement Cost
Actual cash value (ACV) is the amount equal to the replacement cost minus depreciation of a damaged property at the time of the loss. The actual value for which the property could be sold, which is always less than what it would cost to replace it.
Functional Replacement Cost
Functional Replacement Cost
Functional Replacement Cost
Functional replacement cost means the amount which it would cost to repair or replace the damaged building with less costly common construction materials and methods which are functionally equivalent to obsolete, antique or custom construction materials and methods used in the original construction of the building.
Replacement Cost
Functional Replacement Cost
Replacement Cost
The amount of money needed to repair your home at today's prices of building supplies. However, at time of loss, the property must be repaired/replaced for Replacement cost values to be received.