Property insurance provides financial security to the owner or tenant of a property in case of theft / robbery, damage or natural disaster. Standard property insurance coverage includes damage caused by fire, wind, hail, landslides, lightning, theft, etc.
There are two property insurances:
Insurance at replacement value - it does not take into account the obsolescence (depreciation) of the object. The insurance indemnity is calculated on the basis of the agreed replacement value, which is equal to the price of new property of the same type.
Insurance at fair value - the most common form of insurance companies. The insurance amount of the object is equal to its actual value at the time of concluding the insurance contract. The actual value of the new property is established by invoice, price list, catalog and / or by expert assessment of the insurer.