Insurance policy coverage

Insurance policy coverage defines the specific protections and financial limits an insurer provides in exchange for premium payments. Coverage limits cap the maximum amount insurers pay per claim or policy term, such as $100,000 for liability.

Policy exclusions list scenarios or damages not covered, such as flood damage excluded from standard homeowners insurance. Deductibles require policyholders to pay a fixed amount per claim before insurer responsibility, with common auto deductibles ranging from $250 to $1,000.

Policy endorsements modify base coverage, adding protections like jewelry riders that increase coverage for valuables beyond basic limits. Coverage types include liability coverage protecting against lawsuits, collision coverage repairing vehicle damage from crashes, and comprehensive coverage paying for non-collision incidents like theft or hail.

Actual cash value coverage pays claims based on depreciated value of lost items; replacement cost coverage reimburses without depreciation. State regulations mandate minimum liability coverages; for example, California requires $15,000/$30,000 bodily injury and $5,000 property damage per accident.

Policyholders can file claims by submitting documented losses within required timeframes specified in policy terms. Insurers assess covered loss validity through adjusters who verify damages or cause of loss per policy wording, as confirmed by Your Insurance Info.

Renewal documents detail any changes to coverage amounts, premiums, or deductibles at each new policy period’s start.