Which of the following is an example of additional or supplementary coverage?

Which of the following is an example of additional or supplementary coverage?

• A. Debris removal
• B. Exclusions
• C. Policy limits
• D. Underwriting criteria

Answer: (A)

Additional or supplementary coverage refers to additional benefits or protections offered under an insurance policy beyond the basic coverage. Debris removal is a specific example of such coverage. It allows policyholders to have costs associated with the removal of debris following a covered peril included in their policy, ensuring that the insured can clean up and recover from an incident without incurring significant out-of-pocket expenses. In contrast, exclusions identify circumstances or risks that are not covered by the policy, and policy limits set the maximum amount an insurer will pay for a covered loss. Underwriting criteria encompass the guidelines insurers use to evaluate and assess risk when determining whether to offer coverage and at what cost. These concepts are foundational aspects of insurance but do not provide the additional benefits that supplementary coverage like debris removal does.

Additional or supplementary coverage refers to additional benefits or protections offered under an insurance policy beyond the basic coverage. Debris removal is a specific example of such coverage. It allows policyholders to have costs associated with the removal of debris following a covered peril included in their policy, ensuring that the insured can clean up and recover from an incident without incurring significant out-of-pocket expenses.

In contrast, exclusions identify circumstances or risks that are not covered by the policy, and policy limits set the maximum amount an insurer will pay for a covered loss. Underwriting criteria encompass the guidelines insurers use to evaluate and assess risk when determining whether to offer coverage and at what cost. These concepts are foundational aspects of insurance but do not provide the additional benefits that supplementary coverage like debris removal does.