Property forms used to insure rental properties:
Basic Perils

• Fire
• Lightning
• Explosion
• Windstorm or Hail
• Smoke
• Aircraft or Vehicles
• Riot or Civil Commotion
• Vandalism
• Sprinkler Leakage
• Sinkhole Collapse
• Volcanic Action

• Basic Perils, plus
• Falling Objects
• Weight of Snow, Ice or Sleet.
• Water Damage (meaning accidental discharge or leakage of water or steam as the direct result of the breaking or apart or cracking of any part of a system or appliance containing water or steam.)

• it insures against all risks except those specifically excluded or limited.

Loss Settlement Options
Actual Cash Value
"Actual cash value" is often interpreted as meaning the cost of repairing or replacing the damaged or destroyed property at the time of loss, less depreciation and (in some cases) obsolescence.

To illustrate the definition of actual cash value as replacement cost less depreciation, consider a 20 year old building with an expected life of 50 years. Depreciation may be figured by using one of several methods. Using the "straight line" method, depreciation (if the building is totally destroyed) is 20/50ths, or 40% of the value of an identical newly constructed building. If the cost to rebuild the structure new today (its "replacement cost") is $100,000, the actual cash value is $60,000 ($100,000 - 40% of $100,000).

It is possible for actual cash value to equal replacement cost. For example. when a fire damages the interior of a newly decorated room of the building and it costs $5,000 to repair the damage and redecorate the room, the repairs have not produced any "betterment" to the building and no depreciation is deducted from the cost of repair. Actual cash value is the equivalent of replacement cost in such cases, and the full $5,000 will be paid.

Suppose the 20 year old building in the first example had been scheduled for demolition the day after it was destroyed by an insured peril. In those jurisdictions using the broad evidence rule, the scheduled demolition would have rendered the building economically valueless. Its actual cash value would be zero and no claim would have been paid under the policy. In other jurisdictions, the loss would have been paid as calculated using the straight line method of depreciation.

Replacement Cost Coverage
Replacement Cost coverage provides for the full replacement at today`s values of property lost due to a covered loss. There are certain conditions that must be met for "Replacement Cost" coverage to respond:

• requires that the damaged property be actually repaired or replaced before payment is made under the policy
• The cost of repairs or replacement does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use, or repair of any property.
• and, the Replacement Value of the property must be insured to at least the coinsurance requirement at the time of loss

Coinsurance
Coinsurance is an agreement between an insurance company and a business owner to share the cost of a claim. In other words, the policy holder is required to hold a high enough insurance limit to cover a percentage of the property value in order to receive full compensation if there is a loss or damage to the property.

Additional Coverages generally included:

• Accounts Receivable Records
• Debris Removal
• Fire Department Service Charge
• Fire Protection Equipment
• Lock Replacement Coverage
• Outdoor Property
• Outdoor Signs
• Pollutant Clean-Up & Removal
• Preservation of Property
• Utility Service Direct Damage
• Utility Services Loss of Income
• Valuable Papers & Records