Much before signing contract with any insurance company, you need to thoroughly know what the policy includes. Without knowing it’s sections and the purpose of it, you will not make the best use of your policy. There are typically six main sections in almost all insurance policies.
- Declaration Page: This being the first page of your policy, generally has all the required information such as insurer name, address, contact number, a description on policy, cost of policy and dollar amount of coverages included under the policy.
- Definitions: Certain terms used in insurance will not be familiar to insured. In order to define the terms used and deliver the benefit of it by explaining what it means in detail is done on this page. A complete understanding of your policy and its coverages.
- Coverages: The liability and property being covered to a limit under defined coverages.
- Exclusions: Every policy will have its own limits. What is not covered under your policy will be clearly specified and laid out exclusively in the exclusion section.
- Conditions: Insurance policy is a contract signed between you and the insurance company. It lists out the terms and conditions under your policy. It also details your duties at the time of loss. It explains the claim process and information on how settlement works.
- Endorsements: This is an important section of your policy. It includes every amendment made on your policy be it to remove, add, or change the standardized coverage. With endorsements, you meet those special needs and requirements to be included in your policy. An insurance company can make use of endorsements to limit coverages.