UNDERSTANDING YOUR INSURANCE POLICY

Your insurance policy is a complex document that explains the things you're covered for as well as what is excluded when a loss occurs, and you should review your policy carefully so that you have an idea of what may or may not be covered.  In this section we will discuss some of the sections that are basic to most insurance policies, but please do not hesitate to contact us if you have more in-depth questions.

Policy Declarations
The declarations, or "dec," page is basically the first page of the policy package.  It "declares" who the insured is and what time period the policy provides coverage.  It also gives the primary general information regarding the policy, such as address, description of what's insured, the coverages, primary coverage limits, and so on.

Definitions
This section gives you the definitions of all the confusing words and phrases you'll see in the policy.  For example, "motor vehicle" and "deductible" are two terms often found in an auto policy.  Words with definitions are generally in bold print throughout the policy.  That helps you know what to look up if you don't know them already.

Policy Coverages and Exclusions
Policy coverages describe the specific insurance provided by listing what property is covered and for what perils.  For example, a boat owner's policy may cover direct physical loss or damage to the boat and motor, portable equipment and other specified property.  It can also provide liability coverage.  Exclusions describe what coverage limits exist or how coverage may be eliminated depending on how the loss occurs.  Insurers often will allow policyholders to buy back coverage for some exclusions for additional premium.  For example, earthquake coverage may be excluded for people who live in an area where earthquakes are unlikely to happen.  However, if a customer would feel more comfortable with the coverage, they could buy it back.

Limits and special limits
This section explains how much the insurer pays for particular losses or types of property.  So, while something is covered, it may be covered for a specific dollar amount or for a limited percentage of the entire loss.

Conditions
This section basically lists the ground rules of your policy.  It tells you what the insurer's responsibilities are, and what your responsibilities are as the customer.  This includes how to cancel a policy, subrogation, monthly payment plans, and more.

Duties after a loss
This chunk tells you what you need to do when a loss occurs.  It includes things like notifying your insurer as soon as practical, notifying the police in case of theft, and protecting the property from further damage.

Endorsements
These are optional coverages available for additional premium.  Endorsements change your policy to help better fit the policy to meet your needs.  They may add coverage or restrict coverage as needed.  Amendatory endorsements might also be added by the insurance company to clarify policy terms and language.