What does a coverage gap typically result from?

A coverage gap typically arises from uncoordinated policy language. This means that different insurance policies involved may have conflicting terms or definitions, leading to a situation where certain risks or events are not covered adequately. When policy language isn't aligned, it can result in ambiguities or exclusions that leave an insured party vulnerable during a claim.

For instance, if two policies are intended to cover the same risk but use different terms or conditions, an insured may find themselves in a position where one policy doesn’t cover certain damages or losses, leading to a gap in coverage. Insurers may interpret coverage provisions differently, which underscores the importance of having clear, coordinated policy language to ensure seamless coverage across different policies or layers of insurance.

In contrast, while exceeding policy limits and having insufficient deductibles can lead to other issues within insurance coverage, they do not inherently create a gap in the conditions spelled out by the policy language itself.