Definition - What does Extended Coverage mean?
Extended coverage is insurance coverage that goes beyond what a standard policy offers. Typically, it is purchased separately from a standard policy and functions as an extension of the primary coverage. It often covers perils less likely to occur.
Insuranceopedia explains Extended Coverage
Individuals exposed to a particular risk not covered by a standard policy or those who insure something of high value often purchase extended coverage to avail of sufficient financial protection. For example, people living near a dynamite factory might purchase extended coverage on their renter's insurance to cover damage from explosions. In this situation and others involving similar uncommon perils not covered by standard policies, extended coverage is a useful option. In some cases, it can even be critical.