Insurance coverage refers to the scope of protection provided by an insurance policy. It outlines the risks and losses that are covered by the policy and the maximum amount of compensation that the policyholder is entitled to receive in the event of a claim.

The extent of insurance coverage varies depending on the type of insurance policy and the terms and conditions of the policy agreement.

For example, in auto insurance, coverage may include protection against liability for damage or injury caused by the policyholder’s vehicle, as well as coverage for damage to the policyholder’s own vehicle.

In health insurance, coverage may include payment for medical expenses, hospitalization, and prescription drugs. In property insurance, coverage may include protection against damage or loss of property due to fire, theft, or natural disasters.

Insurance coverage can be comprehensive, meaning it provides broad protection against a range of risks, or it can be specific, meaning it covers only certain types of losses or risks.

Policyholders are required to pay premiums in exchange for the coverage provided by the insurance policy. If a covered loss occurs, the policyholder may file a claim with the insurance company to receive payment for the damages or losses suffered.