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What does adequate insurance mean?

Updated: 9/20/2023
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Wiki User

12y ago

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The term "adequate insurance" refers to having sufficient insurance coverage with an authorized insurer to provide you with enough protection for the financial losses that you could reasonably incur. This includes damage or destruction to property that you own or lease, or damage sustained by other parties as a result of your own negligence. The amount of coverage that translates into "adequate insurance" depends upon the interest(s) that you wish to protect.

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12y ago
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