Insurance coverage refers to the protection provided by an insurance policy against financial loss. When individuals or businesses purchase insurance, they pay a premium in exchange for coverage that can help pay for damages, medical expenses, or other costs associated with unexpected events. This can include various types of insurance, such as health insurance, auto insurance, or homeowners insurance. The extent of insurance coverage varies based on the policy terms. Some policies may cover the full cost of damages, while others may only cover a portion or have deductibles that the insured must pay before the insurance kicks in. Understanding the specifics of a policy is essential for ensuring adequate protection.