First Dollar Coverage

AAA

DEFINITION of 'First Dollar Coverage'

An insurance policy feature that provides full coverage for the entire value of a loss without a deductible. Typically, first dollar coverage exists all the way up to the full amount on the policy.


INVESTOPEDIA EXPLAINS 'First Dollar Coverage'

First dollar coverage can be found on health insurance policies, homeowners' insurance and car insurance, among others. This type of insurance involves higher premiums.

RELATED TERMS
  1. Agreed Amount Clause

    A property insurance provision in which the insurer agrees to ...
  2. Premium

    1. The total cost of an option. 2. The difference between the ...
  3. Deductible

    1. The amount you have to pay out-of-pocket for expenses before ...
  4. Casualty Insurance

    A broad category of coverage against loss of property, damage ...
  5. Insurance Score

    A rating computed and used by insurance companies that represents ...
  6. High-Deductible Health Plan - HDHP

    A health insurance plan that has a high minimum deductible, which ...
Related Articles
  1. Exploring Advanced Insurance Contract ...
    Home & Auto

    Exploring Advanced Insurance Contract ...

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

    Long-Term Care Insurance: Who Needs ...

  3. Find Secure And Affordable Post-Work ...
    Insurance

    Find Secure And Affordable Post-Work ...

  4. How the Affordable Care Act Changed ...
    Insurance

    How the Affordable Care Act Changed ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center