Definition - What does Full Coverage mean?
Full coverage means that the insurance company will cover the entire cost of the losses up to the policy limit. This means that no matter what type of damage occurs, the losses will be covered. Sometimes, a deductible must be paid before full coverage kicks in. However, once full coverage applies, it pays for any type of damage.
Insuranceopedia explains Full Coverage
Full coverage is often offered in auto insurance. Someone with this feature included in their auto policy can expect to have damage from falling trees covered, collision damage covered, vandalism damage covered, and so on. The type of damage is irrelevant as long as the amount is beneath the policy limit.
Full coverage is an alternative to policies wherein only specific perils are covered. In these circumstances, the policyholder must pay for damages that occur as a result of non-covered perils.
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