What is additional coverage in an insurance policy?
A provision that adds more coverage for a specific loss at no additional premium.
Additional coverage in an insurance policy refers to any coverage that is not included in the basic or standard policy. It’s also known as a rider or endorsement. The additional coverage is optional and it can be added to the policy to provide extra protection against specific risks. For example, in auto insurance, some common additional coverage options include collision coverage, comprehensive coverage, rental car coverage, and roadside assistance. In home insurance, some common additional coverage options include flood insurance, earthquake insurance, and personal liability coverage. These additional coverages allow policyholders to customize their insurance policies to fit their specific needs and provide extra protection against risks that are not typically covered by standard policies. However, it’s important to note that additional coverage usually comes at an additional cost, so policyholders should consider their budget and their coverage needs before adding additional coverage to their policies.
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