Definition of "First-dollar coverage"
Mary Ann Mercer / Buyers Agent, Real Estate Agent
Downing-Frye Realty, Inc.
Insurance policy under which payment is made for a loss not subject to any deductible or under which payment is made up to the limits of the policy, and then an excess insurance policy takes effect. For example, a homeowners insurance policy section II (liability coverage) would pay up to its limits for an insured loss, whereupon an umbrella liability insurance policy would go into effect.
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