What is the key distinction between included coverage and additional coverage?

The key distinction between included coverage and additional coverage lies in the nature of the protections offered. Included coverage refers to the baseline protection that is automatically provided within an insurance policy. It outlines the specific risks or perils that are covered without further cost. This coverage typically has defined limits for claims, meaning it does not extend beyond what is stipulated in the policy.

On the other hand, additional coverage is an enhancement over the standard included coverage, designed to provide extra payouts for specific situations or categories of loss that are not covered under the basic policy. This allows policyholders to tailor their insurance to better suit their needs, potentially increasing the total amount they can receive in the event of a claim.

While additional coverage can indeed offer extra financial protection, it is not inherently mandatory and is not guaranteed to be more comprehensive than included coverage, which varies by policy. Thus, recognizing that additional coverage modifies or supplements existing included coverage clarifies the distinction between the two.