A Policy Document is not interesting reading material but it is important that you read it. The policy document is a legal contract between you and your insurer. Your insurance policy document mention what is insured, coverage, calculation of premiums and period of insurance. You must ensure that you read and understand your insurance policy to avoid confusion when you need to make a claim.
With that in mind here are some good reasons to read your policy documents:
#1. Your policy contains important dates.
Insurance policies can be time sensitive. Often they contain time periods by which something must be done. For instance, there is a section that mentions the time frame within which you claim from your insurer following a vehicle accident. This ensures a timely and efficient claim process. If you do not read your policy documents and are not aware of such a timeline the chances of your claim being rejected are quite high.
#2. Underneath all that jargon is important stuff.
With all the legal language, insurance policy documents can be quite confusing. But that’s not a reason to toss them aside. The jargon is there for a reason and these word are important when it comes to your coverage. The very factor that determines whether or not you will receive a payout could be the presence or absence of certain words or phrases. If there is anything you do not understand be sure to contact your insurer or your insurance broker so that you have a better understanding.
#3. Your policy tells you what you are covered for.
Reading and understanding your policy will let you know what you are covered for. On this point pay special attention to “exclusion” clauses. Exclusions are those instances, events and or items for which your insurance does not provide coverage. In other words, these clauses tell you what you cannot make a claim for.
#4. Your policy documents contain your policy limits.
One of the most important aspects of your policy documents is your policy limits. They are the maximum amount of money you will be paid in the vent of a claim. There are often numerous limits applied to different parts of your policy like a limit on content replacement and liability. You will also have to pay an excess, yet another thing discussed in your policy documents.
#5. Your policy documents set out important conditions.
this section tells you what the insurer’s responsibilities are and what your responsibilities are as the client. Important requirements and conditions are set out here such as the payment of premiums or the expectation that the insured property would be maintained in a certain condition etc. it also includes procedures to follow after a loss. If policy conditions are not met the insurer can reject your claim. Don’t take that risk, read your documents and know what is required of you.
#6. Reading your policy helps you stay on top of modifications.
The “Endorsement” section in your documents offers you options to add coverage or increase coverage limits. Whatever is done under the endorsements section of your policy becomes part of your policy and is in fact part of your contract between you and the insurer. It is important to keep track of any changes made under endorsements so you are not caught by surprise.
While it is difficult to understand the ins and outs of your insurance documents, sometimes understanding the basics can save you from a great deal of regret later on. Be sure to read your documents carefully and ensure all your personal details are correct as incorrect details can have an impact on your claim.