If a claim occurs outside the defined policy territory, what is typically required to extend coverage?

• A. An endorsement to broaden the territory.
• B. No action needed; automatically extends.
• C. A separate policy purchased from another insurer.
• D. Cancellation of the policy.

Answer: (C)

Territorial limits define where a policy will respond. When a claim happens outside that defined territory, the policy usually won’t cover it. To extend coverage beyond the stated area, a separate policy from another insurer is typically required. This approach gives the insured explicit, underwriting-approved protection for those outside regions, with terms, limits, and jurisdiction handled under a distinct contract. Endorsements to broaden territory can exist, but for true coverage outside the original territory, securing a separate policy is the standard route.