In automobile insuranceInsurance coverage that provides indemnity and/or compensation for injury or physical damage which ensues from the ownership, use or operation of an a... More, optional coverage is a commonly used termThe period of time from the inception to the termination of an insurance policy or bond. More for insurance that is not required by law, such as coverage for collision or comprehensive claims (e.g., theftThe wrongful taking of the property of another. It is a broad term and includes larceny, pilfering, hold up, robbery and pick pocketing More).

For home insurance, optional coverage is that which is not normally included in standard home insurance policies, but which can be purchased separately, such as coverage for damage from earthquakes, furnace oil spills and sewer back-up.