Extended Coverage Insurance policies may be necessary to ensure you are fully insured

Extended coverage is a term used by brokers and insurance companies to denote coverage that goes beyond the limitations of the "basic" policy. All insurance policies have exclusions, or specific losses or reasons for losses that are not covered by the insurance policy, as you see in the pages of documentation you get when you sign up. An Extended coverage (EC) policy can cover these exclusions and give you piece of mind.

We usually feel fully covered for potential losses because we carry many types of insurance, but how many times do you read the pages and pages of fine print. A person who lives far from the coast would think that basic insurance that excludes hurricane provisions would be fine, because hurricanes usually strike near the shore. However, they might be surprised to learn that damage from flooding away from the shore due to the rainfall associated with a dissipating hurricane may not be covered.

The term “Extended coverage” also can be used to describe coverage amounts (what they'll pay you for your loss) above and beyond what is already covered. For example, if you live in an area where wildfires are common, you can buy Extended coverage insurance that provides more complete restoration of your home and land than your regular homeowners policy would have paid for

Extended coverage can also mean extending the time of a warranty. A plasma TV that is warranteed for a year may have an optional 3 or 4 year warranty extension that is worth looking in to. Car dealers often have these extended coverage policies as well. You should research whether they are worthwhile for the product or service you are buying.

If you think there are areas of risk or potential loss where extended coverage could benefit you or your family, call your insurance broker.