Brokers and insurance companies use the term "extended coverage" to describe coverage that goes beyond what is in the basic policy. All basic insurance policies have "exclusions," which are certain types of losses or reasons for losses that the policy doesn't cover. But these exclusions are covered by an Extended Coverage (EC) policy.
We often think we are fully covered because we have a lot of different types of insurance, but how many of us actually read the fine print? A person who lives far from the coast might think that basic insurance that covers hurricanes is enough, but they might be surprised to learn that damage from "flash" flooding away from the shore caused by the rain that comes with a hurricane might not be covered.
Different kinds of extended coverage are:
- Flood insurance covers hurricane floods, which are usually not covered.
- Hailstorm insurance unless hail is specifically covered by the basic policy
- Insurance for earthquakes
- Extended Title Insurance, because basic title policies don't cover a lot of things
- Extra medical insurance for illnesses and lengths of stay not covered by the basic policy
- Extended dental insurance for some dental surgeries
This is by no means the whole list. In fact, there are some extended coverage policies that can be made to fit your individual needs.
"Extended coverage" can also mean financial protection that goes above and beyond the covered amount. For example, if you live in an area where wildfires happen often, you can buy Extended Coverage insurance to pay for more money or a more complete repair than your regular homeowners policy would.
If you think you or your family could benefit from extra coverage in some way, call your broker or talk to your insurance company. You can also start by reading the policies you already have. Find out what events aren't covered and how likely they are to happen to you and your family. Most of the time, your broker can also do this, and he or she will know what kinds of coverage problems others in your area have had.
