Coverage Territory
Definition:
The geographic area where your policy provides coverage.
Explanation:
Most homeowners policies apply to the United States, its territories, and Canada. Losses outside the coverage territory are typically excluded.
Example:
If your personal property is stolen while you’re traveling in California, it’s covered. If it’s stolen in Europe, it may not be covered.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.