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What
kinds of risks are covered? - Two types
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All
risk coverage - covers all risks that are
not specifically
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excluded in the
policy
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Named
perils coverage - covers only risks that
are
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specifically
mentioned
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How
much will be reimbursed if loss occurs?
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– Two types
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Replacement
cost -amount needed to replace new for
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old, with no
deduction for depreciation
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Actual
cash value - market value, equal to
replacement
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cost less
depreciation
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