What is the term for the part of an insurance policy that explains what is covered?

The term that refers to the part of an insurance policy that explains what is covered is identified as "Coverage terms." This section specifically outlines the benefits and protections provided under the policy, detailing the circumstances under which claims may be made and what events are covered.

Understanding coverage terms is crucial for policyholders since they define the scope of the insurance protection being purchased. This section typically includes information about the types of losses or damages covered, applicable limits, and any special provisions related to the coverage.

In contrast, exclusions specifically list what is not covered by the policy, declarations generally summarize key details such as the policyholder's information and the coverage amounts, while conditions outline the duties and obligations of both the insurer and the insured in relation to the policy. Coverage terms are key for ensuring that individuals understand their rights and benefits under the insurance agreement.