Property coverage responds to physical loss, and the terms determine whether a loss is fully paid.
Valuation. Replacement cost or actual cash value, with the difference substantial on older buildings. Replacement cost is generally paid only on actual replacement, with actual cash value advanced until then.
Coinsurance. A penalty where the insured amount is below a stated percentage of value, reducing recovery proportionately even for partial losses. Agreed value endorsements remove it and are worth obtaining.
Ordinance or law coverage for the increased cost of rebuilding to current codes, the undemolished portion, and demolition. Without it, a substantially damaged older building can be uninsurable in practical terms.
Business income and rental value with an adequate period of restoration and an extended period after operations resume.
Exclusions. Flood and earth movement, which require separate coverage; wear and tear; and in many policies specific perils requiring endorsement.
Deductibles including percentage deductibles for wind and named storms.
Lender requirements. Mortgagee clauses, loss payee status, notice of cancellation, and reserve requirements.
Claims. Prompt notice, protection of the property from further damage, documentation of the loss, and appraisal provisions for valuation disputes.