A private insurance program that protects purchasers of newly constructed homes, offering coverage against structural and mechanical faults provided the builder participates in the program.
Insurable interest is a financial stake in an entity or event such that the loss of that entity or the occurrence of the event would cause a financial loss to the interested party. It is a prerequisite for purchasing insurance and claiming benefits on a policy.
Insurance coverage refers to the total amount and type of insurance a property owner maintains to protect against various risks, including hazards, liability, and other potential losses.
Replacement cost refers to the expense associated with reconstructing or replicating a building to perform the same function as the original structure. This concept is pivotal in insurance and real estate investment.
Replacement Value Protection is an insurance policy feature that provides for the reimbursement of the full cost of lost or damaged property, less the policy’s deductible amount, without deduction for depreciation.
