Additional Coverage
Definition
Optional protection that extends beyond the base policy to cover specific risks or increase limits. Additional coverage is added via endorsement or included in broader policy forms.
Example
A homeowner's policy includes $500,000 in dwelling coverage. The policyholder adds an endorsement for $50,000 in additional coverage for jewelry, which would otherwise be subject to lower sublimits.
In Practice
Additional coverage allows policyholders to customize their protection for specific needs. Common examples include scheduled personal property, business use of premises, and increased limits for specific perils. Premiums are adjusted based on the additional risk. Policyholders should review their coverage annually to ensure adequate protection.