Valued Policy
The value of the insured property is agreed upon at the time of policy purchase, and this pre-agreed amount is paid out in case of a total loss.
Average Policy
In case of partial loss, the insurer pays a proportion of the loss based on the ratio of the insured value to the actual value of the property.
Comprehensive Policy
This offers broader coverage, including fire and allied perils, as well as other risks like burglary and theft. These are more common for businesses.