Eligible for coverage
A loss is eligible for coverage when it meets the policy’s terms and therefore entitles you to compensation. The insurer checks, among other things, whether it happened during the insurance period, whether that type of loss is included, and whether any exclusions apply. If a loss isn’t eligible, the claim is rejected.
Examples
Water damage from a burst pipe is eligible for coverage, whereas damp from a roof that has leaked for years usually isn’t.