What types of damages are covered by insurance?

In Idaho, insurance law allows a policyholder to receive damages if they have suffered a covered loss. Insurance policies typically cover both direct and indirect damages, depending on the scope of the policy. Direct damages are damages that are the direct result of a covered loss. This includes repairs or replacement of any property or items damaged, such as a car, house, and furniture. In addition, any medical bills associated with an injury are considered to be direct damages. Indirect damages are those that are not the direct result of the covered loss. These can include lost wages due to an accident, lost profit or income due to an accident, and any consequential damages resulting from the covered loss, such as additional expenses incurred due to the loss. Insurance can also cover punitive damages, which are those awarded in a lawsuit as a punishment for wrongful conduct. Most policies, however, do not cover punitive damages. In Idaho, insurance companies must pay the insured for any covered loss according to the terms of the policy, up to the maximum amount of coverage. Insurance is intended to provide you with financial compensation to help you recover from a loss. It is important to understand the scope of your coverage and the types of damages that are covered by the policy.

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What types of damages are covered by insurance?

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