Coverage Gaps

Coverage gaps refer to specific areas or situations where an insurance policy does not provide protection or reimbursement. These gaps mean that if a covered event occurs in these areas, the policy won't cover the costs, leaving the insured responsible for expenses. For example, an auto insurance policy might exclude coverage for certain types of damage or specific circumstances like natural disasters or certain sabotage. Recognizing coverage gaps helps individuals understand their true protection level, allowing them to decide if additional coverage is needed to fully safeguard against potential risks.