{3:40 minutes to read} Do you ignore your insurance statements? Many people do!
You buy insurance; they send you the policy, and then you never even look at it. You don’t read it, or even try to understand the contents because the language of these policies is quite complicated. Some parts of the policy would probably require a lawyer’s explanation.
Although insurance policies are complex, it’s important to understand what you are buying.
Here are the basic and essential things to look for when that policy arrives in the mail:
- Summary of Coverages, also known as the Declarations Page or Schedules: This is the basic information about the type and amount of coverage you have purchased. The Summary of Coverage pages also specify what’s covered (or not covered) under the policy and how much you are paying in premium. Anyone who buys an insurance policy should look at these pages to make sure they are getting what they’re paying for and what they asked for, and that they have the coverage they need.
- Riders or Endorsements: These are additional types of limits or coverages that you may have paid for when you purchased the policy. Typically, you will see a premium charge for Riders or Endorsements you’ve purchased somewhere in your Summary of Coverages. Riders/Endorsements either provide you with additional coverage as part of what you purchased or put specific limits on the policy.
- The application you filled out: If you purchased a policy for disability, long-term care, life, or commercial general liability insurance, you probably filled out an application. When your policy arrives, the application is usually attached. All the information that you provided concerning your life, your income, your health, etc. are deemed to be representations that the insurance company may rely on. If the application is attached, it’s an opportunity for you to do a final check. You want to be certain that you haven’t made any mistakes or misrepresentations about yourself or your business.
Of course, I’m not suggesting that you read every line of your insurance policy or hire a lawyer to help you understand all of its provisions; everyone should, at least, look at these few basics to be sure that you know what you are getting and what you purchased is what you asked to purchase from the broker or the insurance company.
Do you know what’s in your insurance policy? When was the last time you even thought about taking a look? Contact us today with questions or comments.
Evan S. Schwartz
Founder of Schwartz, Conroy & Hack
833-824-5350
[email protected]
