Adequacy of coverage

(redirected from Coverage Adequacy)

Adequacy of coverage

A test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging.

Adequacy of Coverage

The extent to which an asset or investment is protected from loss by insurance or hedging. For example, if one owns a house, there is the risk that it could burn down. Adequacy of coverage measures the extent to which the insurance benefit covers the value of the house.
References in periodicals archive ?
Increased use of modern "component-based" estimating solutions like the MSB Residential Component Technology (RCT) has also improved coverage adequacy, since true replacement cost values are now calculated on a risk-specific basis.
For commercial lines: The best approach is to review the true business impact of a catastrophe, operational considerations, technology coverages, business interruption coverage adequacy, flood coverages, deductibles and property value coverages.
To efficiently diagnose potential performance concerns and opportunities in those areas, InFocus Solutions rapidly segments books of business by loss ratio, loss costs, retention, frequency, severity, ITV coverage adequacy and/or distribution channel performance.
For coverage adequacy, proper coverage offerings and documentation of rejection of that offer.
Instead, concentrate on the broader issues of coverage adequacy.