Broad Form Insurance

A A A

DEFINITION

Insurance coverage that extends beyond the basics to include rare events that may be of serious risk to the insured. This type of insurance usually requires that a higher premium, and often a deductible, be paid. Broad form insurance can be applied to nearly all forms of insurance including investments, assets, etc.

INVESTOPEDIA EXPLAINS

An example of this type of insurance can be found in automobile insurance. A customer may require glass insurance as the driver is frequently on the highway and obtains a lot of chips in the front window. Glass insurance is not offered under the basic plan and therefore must be specifically requested and a premium must be paid.


RELATED TERMS
  1. Broad Form Personal Theft Insurance

    Insurance coverage to protect personal assets. Broad form personal theft insurance ...
  2. Extraordinary Item

    Gains or losses included in a company's financial statements, which are infrequent ...
  3. Life Insurance

    A protection against the loss of income that would result if the insured passed ...
  4. Premium

    1. The total cost of an option. 2. The difference between the higher price paid ...
  5. Deductible

    1. The amount you have to pay out-of-pocket for expenses before the insurance ...
  6. Insurance

    A contract (policy) in which an individual or entity receives financial protection ...
  7. Blanket Insurance

    A single policy on an insured property that covers more than one type of property ...
  8. Microinsurance

    Insurance products that offer coverage to low-income households. A microinsurance ...
  9. Reinsurer

    A company that provides financial protection to insurance companies.
  10. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s ...
Related Articles
  1. Choosing The Best Disability Insurance ...
    Options & Futures

    Choosing The Best Disability Insurance ...

  2. Are Your Bank Deposits Insured?
    Savings

    Are Your Bank Deposits Insured?

  3. Variable Vs. Variable Universal Life ...
    Retirement

    Variable Vs. Variable Universal Life ...

  4. Long-Term Care Insurance: Who Needs ...
    Home & Auto

    Long-Term Care Insurance: Who Needs ...

  5. 15 Insurance Policies You Don't Need
    Insurance

    15 Insurance Policies You Don't Need

  6. Preparing Your Finances From Natural ...
    Home & Auto

    Preparing Your Finances From Natural ...

  7. Long-Term Care Insurance: You Have Options
    Options & Futures

    Long-Term Care Insurance: You Have Options

  8. Top Tips For Cheaper, Better Car Insurance
    Options & Futures

    Top Tips For Cheaper, Better Car Insurance

  9. Life Insurance Clauses Determine Your ...
    Home & Auto

    Life Insurance Clauses Determine Your ...

  10. Life Insurance: Putting A Price On Peace ...
    Insurance

    Life Insurance: Putting A Price On Peace ...

comments powered by Disqus
Hot Definitions
  1. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
Trading Center