Extended coverage is a term used by brokers and insurance companies to denote coverage that goes beyond the basic policy. All basic insurance policies have exclusions, or specific losses or reasons for losses that are not covered by the insurance policy. However, an Extended Coverage (EC) policy covers these exclusions.
Oftentimes we feel that we are fully covered because we carry many types of insurance, but how many of us truly read the fine print. While a person who lives far from the coast would think that basic insurance that includes hurricane provisions would be enough, they might be surprised to learn that damage from “flash” flooding away from the shore due to the rainfall associated with a hurricane may not be covered.
Types of extended coverage include:
– Flood insurance, including floods caused by hurricanes which are usually not covered
– Hailstorm insurance unless hail is explicitly covered by the basic policy
– Earthquake insurance
– Extended Title insurance, because there are many things not covered by basic title policies
– Extended medical insurance for illnesses and lengths of stay not covered by the basic policy
– Extended dental insurance for some dental surgeries
This is certainly not an exhaustive list. In fact, there are some extended coverage policies where your unique needs can be specifically tailored into the policy.
The term “Extended coverage” also can be used to describe financial coverage above and beyond what the covered amount is. For example, if you live in an area where wildfires are common, you can buy Extended Coverage insurance for such an event to provide additional money or more complete restoration than your regular homeowners policy would pay for
If you think there are areas where extended coverage could benefit you or your family, call your broker or consult with your insurance company. You can also start by reading the policies you currently have – what are the exclusions or limitations, and how likely are those events to happen to you and your family. Often your broker can do this as well, and he or she will have information about the kinds of coverage problems that have happened to others in your area.