What type of insurance provides coverage after property damage has occurred, depending on its actual cash value?

Comprehensive insurance is designed to cover various types of property damage that occur outside of the policyholder's control, such as theft, vandalism, natural disasters, and other specified perils. When a claim is made under a comprehensive insurance policy, the insurer typically evaluates the loss based on the actual cash value of the damaged property. This means they take into account the replacement cost of the item minus depreciation, which allows for compensation that accurately reflects the value of the property at the time of the loss.

This type of coverage is beneficial as it provides a safety net for property owners, ensuring that they are financially protected in the event of unexpected damage. In contrast, the other options listed provide coverage for more specific circumstances or do not directly relate to property damage coverage after the fact, such as collision coverage focused solely on auto accidents, or equipment breakdown insurance which covers mechanical failures rather than catastrophic events. Understanding the specific context of comprehensive insurance helps clarify its role in providing a broad range of protections against various types of property damage.