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When it Comes to Insurance, the Devil is in the Details

When it Comes to Insurance, the Devil is in the Details

January 28, 2022
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Identify These Sections in Your Policies

Understanding an insurance policy can feel like a big undertaking if you don’t have much experience with them. Knowing what six elements will likely be a part of every insurance policy can provide you with a solid foundation for understanding policies now and in the future.

Save yourself time and frustration and learn how to better understand your future insurance policies.

1. Declarations

The Declarations summarize the details of your insurance policy. It will generally include the type of coverage, policy details, names of the people covered, dollar limits of the coverage and deductible, a list of the endorsements included in your policy and the discounts applied to the policy. If you read this document and see that one of the listed details is incorrect, tell the insurance company about it right away.

2. Insuring Agreement

The Insuring Agreement is the main section of the insurance policy. This section lays out who gets what coverage in exchange for your insurance premiums. After reading this section, you should have a broad overview of your coverage. Together, your Insuring Agreement, Exclusions and Glossary should provide you with a clear picture of what is and isn’t covered in the policy.

3. Exclusions

While the Insuring Agreement tells you what your plan does cover, the Exclusions section tells you what your plan doesn’t cover. The Exclusions section may also cover the exceptions to any exclusions. Be sure to read that section as well. There may be other exclusions throughout the policy to consider, besides what you find in the Exclusions section.

4. Conditions

In the Conditions section, you’ll find information about conditions in which the insurance company could deny a claim. There may be language in this section like always and never. Pay close attention to this kind of language as it may stipulate specific conditions you need to be aware of.

5. Endorsements

The Endorsements section of your insurance policy adds, removes or amends the coverage laid out in the policy. Endorsements can be added during the policy term, when you first enroll or when you renew your plan.

6. Glossary

The Glossary is an important resource when you’re reading your insurance policy. It provides definitions of words in the policy that may have distinct meanings in the insurance industry. If you are reading through your policy and see words in italics or bold, these terms will likely be in the Glossary, where you can reference them as needed.

Insurance policies aren’t always easy to decipher. Continue learning about insurance policies and take the guesswork out of selecting coverage. If you need help understanding your current insurance policy and finding more ways to protect yourself in the future, contact the office.

This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.