Leasehold interest: a tenant with a favorable lease, paying less than the space is worth, loses something real if the lease is cancelled. Leasehold interest coverage pays the tenant for the value of that lease when it is cancelled under its terms because of direct physical damage from a covered cause. The tenant's interest is the gap between the rental value and the rent actually paid. Business income pays lost profits during restoration, not the value of a lease.
How limits can be arranged:
Blanket insurance: one lump-sum limit over two or more buildings, classes of property or locations. It helps an insured whose values shift among sites.
Specific insurance: a separate limit for each building or item.
Scheduled insurance: a list of items, each with its own limit.
Agreed value suspends the coinsurance condition for the covered property while the option is in effect, so a rise in values during the term does not cause a coinsurance penalty. The insured normally supports the amount with a statement of values.
Agreed value does not turn every partial loss into a payment of the full limit. The insured still recovers only the amount of the loss, up to the limit.