You might be like me when it comes to reading the “terms of agreement” on most things. I’ve often just clicked the “I accept” box without putting much thought to it. Whether your using an app or making an online purchase most people never read the fine print. However, when it comes to Insurance, reading the terms of your contract after the fact of something bad happening can have costly consequences. In this week’s blog I break down some of the terminology of an Insurance policy in order to help you better understand your policy.
The first part of your Insurance policy will be the Declaration Page. This is the first page or pages of your policy that summarizes important information such as who is insured, a description of what’s insured, coverages included and details about your coverages. Coverages are a detailed view of what’s included in your policy and eligible for a claim. This section will detail when and how your coverage applies. It also describes deductibles and limits of your policy. A deductible is how much you’re required to pay during a claim. Limits are the terms or limitations that apply.
Exclusions is the section of a policy that helps you understand what is not covered under your policy. This includes any loss not included in an all-risks policy. Your type of coverage, state you live in and insurance carrier will all affect the exclusions in your policy. Common exclusions listed on a homeowner’s policy include losses from war, acts of terrorism and neglect.
Endorsements, or riders as they’re also called, can be added to customize your insurance policy. They can also be used to tailor your coverage in response to life changes between policy renewals. Changes that could create a need for an endorsement. For example, the sale of your car, purchase of a new vehicle, an engagement ring or a basement renovation.
Not sure if you need to update your insurance? I invite you to contact me for a confidential no hassle review of your policies. I’ll translate Insurance to English for you.
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