Coverage Area
What Does Coverage Area Mean?
The coverage area refers to the geographic region or location where the benefits of an insurance policy are applicable and can be used to file a valid claim. For example, the coverage area for travel health insurance might be specified as “anywhere in the world,” meaning the policyholder can receive necessary medical treatment regardless of their location and still be entitled to benefits, provided they meet the policy’s conditions.
Insuranceopedia Explains Coverage Area
Insured individuals must understand the coverage area of their insurance policy to avoid the risk of having no coverage. For example, an auto insurance policy issued in the United States may not cover accidents or incidents that occur outside U.S. territory. A policyholder traveling abroad may need to obtain supplemental insurance to extend their coverage area or purchase a separate policy that provides the necessary protection.
