Understanding Insurance Policy Details

When getting an insurance policy you need to make sure that you understand what it is all about. The last thing you want is to be lost in the jargon used by insurance companies.  You need to make sure that you understand what all the terminology means before you agree to any terms.

If you are using a broker, you need to make sure that he/she explains the terms to you and that you fully understand how they work.

Policy Number – you need this to report a claim or to make changes to your policy. This number is your first reference point when you need to process a claim.

Dates- this is the effective date and expiry date of your coverage

Underwriter– another word for “insurer”.

Insured – this refers to you, the policyholder. The contract is between you and the insurance company.

Additional named insured– the name of a co-owner of a vehicle or property who is named in the insurance policy.

Premium– the cost of your insurance policy

Insurance policy- legally binding contract between the insurer and the policyholder

Terms and Conditions– these specify the ways in which the insurance policy will operate

Deductible/excess – the amount you must pay before your insurance policy starts paying

Exclusions – specific conditions or circumstances for which the policy will not provide benefits

Agent- individual who sells and services insurance policies

Claim- a demand made by the insured or the insured’s beneficiary, for payment of the benefits as provided by the policy

Coverage– the scope of protection provided under an insurance policy

Liability- any legally enforceable obligation

When you are looking for an insurance policy, you are obliged to make sure that you disclose all relevant details accurately. The insurer will calculate the risks to your property based on your answers.

 

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