What kind of coverage would be best for the following type of home and contents?

Question

What kind of coverage would be best for the following type of home and contents? All wood heritage home (circa 1915) Modest furnishings Highly valued coin collection Swimming pool a) Actual cash value, comprehensive coverage, minimum liability, personal property floater b) Actual cash value, basic coverage, minimum liability, umbrella policy c) Replacement value, broad coverage, maximum liability, personal property floater d) Replacement value, comprehensive coverage, maximum liability, umbrella policy

Explanation / Answer

A personal property floater is a policy for an item of high value that is not typically covered under home owner's insurance

An umbrella policy is an extra liability insurance coverage that goes beyond the limit of insured's home. It provides security to thoes who are at risk of being sued for damages to other people. For example accident

Hence in over case the policy type would be personal property floater as we are not at risk of being sued

Now actual value is nothing but replacement value less depreciation. hence it is better to use replacement value

c) Replacement value, broad coverage, maximum liability, personal property floater

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