Florida 2-15 Insurance License Exam 2025 – 400 Free Practice Questions to Pass the Exam

Excess coverage refers to a type of insurance that provides additional protection beyond the limits of an underlying policy. This is particularly important for individuals or businesses that may face significant risks or potential losses that exceed what their primary insurance can compensate. When one policy’s limits are exhausted due to claims, excess coverage kicks in to cover the additional amounts, ensuring that the insured has a safety net for larger losses.

In contexts such as auto or homeowners insurance, having excess coverage can be essential for safeguarding against financial loss that could arise from high-cost incidents, such as severe accidents or catastrophic events. This type of insurance is often utilized in conjunction with a primary policy to create a more comprehensive risk management strategy, making it an attractive option for those seeking enhanced security and peace of mind.