What type of coverage would exclude losses due to normal wear and tear?

The best choice for excluding losses due to normal wear and tear is actual cash value coverage. This type of coverage pays for the current market value of an item at the time of loss or damage, which inherently considers depreciation. As a result, it does not cover losses that occur simply from deterioration, aging, or standard maintenance issues, which would be classified under normal wear and tear.

In contrast, replacement cost coverage and guaranteed replacement cost coverage aim to provide funds for replacing an item without accounting for depreciation. Basic form coverage specifically refers to a policy with a limited scope of perils covered, but it does not necessarily relate to depreciation and wear and tear in the same way that actual cash value does. Thus, actual cash value is correctly associated with the exclusion of losses due to normal wear and tear.