Full Coverage
What Does Full Coverage Mean?
Full coverage means that the insurance company will cover the entire cost of losses up to the policy limit. This ensures that all types of damage are covered, regardless of the cause. However, a deductible may need to be paid before full coverage takes effect. Once full coverage is in place, the insurance will pay for any type of damage up to the specified limit.
Insuranceopedia Explains Full Coverage
Full coverage is commonly offered in auto insurance. A policyholder with this feature can expect damage from falling trees, collision damage, vandalism, and other incidents to be covered, as long as the cost is within the policy’s limit. The type of damage is irrelevant, provided it falls below the policy’s coverage limit.
Full coverage serves as an alternative to policies that only cover specific perils. In these cases, the policyholder is responsible for paying for damages caused by non-covered perils.
