Question

What are the 3 basic levels of coverage that exist for homeowners insurance?

The above asked question is from Insurance topic

The question was posed to me in unit test.

Other related questions to my question are:

What are three 3 examples of what may not be covered under homeowners insurance coverage?

What is the most basic home insurance coverage?

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What are the two types of coverage provided by a homeowner insurance policy?

Answer 1

The correct answer is: Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value. Policy rates are largely determined by the insurer's risk that you'll file a claim; they assess this risk based on past claim history associated with the home, the neighborhood, and the home's condition.

The title of my answer is Homeowners Insurance Guide: A Beginner's Overview