What does the term "line of coverage" refer to in an insurance policy?

The term "line of coverage" in an insurance policy refers to a specified risk or group of risks that are covered. This term is crucial in understanding how insurance products are categorized and how policies are structured to address particular needs or exposures. Each line of coverage typically delineates the scope of what is insured and the circumstances under which claims can be made.

For example, lines of coverage can include categories like homeowners insurance, automobile insurance, or liability insurance. Each of these lines addresses distinct risks associated with different areas of life or business, allowing policyholders to choose the specific protections they require. Understanding this concept helps both adjusters and policyholders recognize the specific protections provided under an insurance policy and ensures that coverage aligns with the insured's needs.