Friday, April 13, 2018

11 Rules for Reading any Insurance Policy

I know you don't like to read your insurance policies, but let's face it you do need to. You're paying for them and you may eventually need to make a claim.  

Rarely do insurance brokers, even those who have been in the business for decades, take the time to read an entire policy. 

When they do so, they are generally seeking a specific answer or researching a problem -- undertakings that require them to review only individual parts of the coverage form and/or its applicable endorsements to determine the required answer or opinion.

Whether reading an entire policy or only sections, these 11 Rules can be applied in reading the policy form to make finding the needed answer easier and quicker.

These are not shortcuts to reading the policy, as there is no shortcut to reading any legal document, just pointers towards correct policy interpretation and application. Here are the 11 Rules for Reading any Insurance Policy:

  1.  Ascertain who qualifies as an insured.
  2.  Confirm that all Forms and Endorsements are attached.
  3.  Read the Insuring Agreement first
  4.  Read the Exclusions.
  5.  Read the Exceptions to the Exclusions.
  6.  When the policy refers to another section, read that section immediately.
  7.  Pay attention to the conjunctions used in a list.
  8.  Pay attention to key words and phrases.
  9.  Read and understand the Definitions of Specifically Defined Terms.
  10.  Understand and make sure all the policy conditions have been met.
  11.  Confirm the coverage limits are adequate for the loss.

Do you have any questions concerning any of your policies, email me your questions. 
If you have any comments, leave them below.  

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