Definition: Connection Insurance is a form of insurance that covers the cost or liability for damage or loss to third parties who may have been connected through an insurance policy, such as homeowner, car, renters, and commercial insurance policies. The term "connection" refers to the relationship between two entities, in this case homeowners. When a person signs a home insurance policy, it usually insures that the individual's property is protected from damage or loss due to factors beyond their control, like natural disasters, fires, or theft. When someone else is connected through the insurance policy, such as a car or vehicle, they are considered a "third party" and must be covered by the same level of liability. In this case, if another person's car causes damage to your property, you would likely need to pay for their repairs. The term "connection insurance" is designed to provide coverage for both the individual and the third party involved in an accident or disaster. It helps protect homeowners from financial losses caused by accidents that happen while they are connected through an insurance policy, such as fire or theft. The definition of connection insurance can vary depending on the type of insurance policy used, but it generally covers the cost or liability for damage or loss to third parties who have been involved in a relationship with your property.

connection insurance