How to Understand Your Insurance Policy
When facing your insurance policy, it’s easy to become overwhelmed. If you’re having difficulty understanding your insurance policy, don’t worry. Sully Insurance Center of Santa Monica is here to shed some light on what an insurance policy is and what’s inside.
Santa Monica Insurance Experts are Here to Help
The first step to understanding your insurance policy is knowing what an insurance policy is. An insurance policy is a legal contract between the insurance company and the person, business, or entity being insured. Reading over your insurance policy is the best way to know exactly what is covered and if the policy meets your needs.
There are four basic parts that make up an insurance contract: the declaration page, the insuring agreement, exclusions, and conditions. Let’s break it down:
- Declarations – The declarations page is the first page of your insurance policy. It identifies who is an insured, what risks or property are covered, the policy limits, and how long the policy is in force.
- Insuring Agreement – The insuring agreement states what is covered by the insurance company as well as the major promises of the insurance company. The insurer agrees to certain things such as paying for losses, providing certain services, and defending the insured in a liability lawsuit.
- Exclusions – Exclusions take coverage away from the insuring agreement. There are three major types: excluded perils or causes of loss, excluded losses, and excluded property.
- Conditions – Conditions are provisions inserted in the policy that qualify or place limitations on the insurer’s promise to pay or perform. If the policy conditions are not met, the insurer can deny the claim.
Each policy has certain exclusions and conditions that pertain to your specific type of insurance. It’s important to know the language to understand the coverage that applies to your loss. If you need a little extra help, our insurance experts in Santa Monica can explain what exactly your policy covers.
If you still have questions about how to understand your insurance policy or are interested in requesting a quote, don’t hesitate to give Sully Insurance Center a call at (310)-309-1311 today.