Which type of coverage is included in most property insurance policies to include new acquisitions?

The correct coverage that is typically included in most property insurance policies to cover new acquisitions is referred to as extension coverage. This component allows policyholders to automatically include newly acquired property under their existing policy without the need for immediately updating the policy or notifying the insurer.

Extension coverage is particularly beneficial for businesses and homeowners who may frequently acquire new valuables or property, as it provides a level of assurance and flexibility. It often comes with certain limits, such as a specified dollar amount that can be included for new items, ensuring they are protected from the moment they are acquired.

The other types of coverage listed generally do not specifically address the inclusion of newly acquired items in the same way. All-risk coverage typically refers to a broad range of perils but does not automatically apply to new acquisitions without proper notification. Replacement cost coverage pertains to reimbursing the policyholder for the cost to replace items without depreciation but does not specifically relate to new items. Scheduled property coverage involves listing specific items on a policy, which also does not provide the automatic inclusion feature that extension coverage offers.