Coverage types refer to the different categories of protection offered by insurance policies. Common types include liability coverage, which helps pay for damages or injuries you cause to others, and property coverage, which protects your belongings from risks like theft or fire. Each type serves a specific purpose, ensuring that individuals and businesses can manage potential financial losses. Another important coverage type is health insurance, which helps cover medical expenses for illnesses and injuries. Additionally, auto insurance provides protection for vehicles and drivers in case of accidents. Understanding these coverage types is essential for making informed decisions about insurance needs.