Insurance Policies Are You Covered Really Covered

Insurance Policies Are You Covered Really Covered

Insurance Policies Are you​ Covered? Really Covered?
For many people buying insurance is​ a​ nobrainer. What I ​ mean is​ most people tend to​ think in​ limited terms about what insurance they really need. 98% of​ people who purchase insurance purchase whatever policy is​ recommended by the​ agent or​ by the​ policy seller.
And a​ good 90% of​ those people have no idea if​ it​ is​ truly the​ coverage they need. We as​ an insurance buying society have become complacent about how we buy insurance. Only when disaster strikes and that insurance is​ needed,​ do most of​ us find out we were faulty in​ getting the​ proper policy to​ cover our needs sufficiently.
Here’s the​ deal,​ insurance companies are in​ the​ business of​ making money,​ not giving it​ away. They gamble that when you​ buy insurance,​ they will collect premiums for a​ very long time and never ever have to​ pay you​ a​ dime in​ claims,​ that’s the​ dream scenario at​ least for the​ insurance company. in​ the​ real world,​ disaster does strike,​ and accidents do happen,​ and your insurance company knows that especially well. And just like the​ big Las Vegas casinos they manipulate the​ game rules so the​ odds are in​ their favor. if​ you​ think that’s not true,​ you​ need to​ read carefully the​ fine print exclusions on​ any number of​ insurance policies you​ might now carry.
Companies don’t make it​ easy for you​ to​ understand what the​ terms of​ a​ given policy are,​ by design. They make note of​ key points early on​ in​ the​ policy,​ then the​ language of​ the​ policy becomes very legalistic in​ its grammar. Outlining many situations and circumstances where by being met,​ your policy will not cover your peril.
For example,​ some auto insurance policies will cover your auto for hit and run damage provided that damage was committed in​ public access areas such as​ city streets or​ parking areas. But they will not cover such damage if​ it​ occurred in​ a​ private parking lot or​ garage.
Here’s a​ big one we ran into not long ago. a​ homeowner ran a​ small internet business from her home,​ selling nickknacks out of​ an office she set up in​ her basement. a​ computer she purchased to​ keep track of​ the​ business with,​ caught fire and caused moderate damage to​ the​ home. When the​ insurance company found out she was running a​ small business,​ by their terms a​ commercial enterprise from her home,​ they refused to​ pay any and all claims related to​ the​ damage the​ computer had caused which was in​ the​ tens of​ thousands of​ dollars.
Here is​ the​ real kicker to​ this story. Six months prior to​ the​ damage,​ the​ woman and her husband had gone into see the​ local insurance agent,​ to​ increase their coverage,​ so the​ office furniture and computer equipment they had purchased would be covered. They even had to​ put a​ special rider on​ the​ policy to​ cover the​ computer and laser printer she would be using in​ her business. All the​ information was out in​ the​ open,​ not hidden,​ the​ agent was totally aware of​ the​ intended use of​ the​ equipment he was insuring and where it​ would be used. Yet the​ insurance company was vindicated in​ refusing to​ pay the​ claim because there was a​ commercial use exclusion clause in​ the​ original policy,​ which took precedent over any rider that did not explicitly insure the​ property for commercial use.
So you​ see it​ is​ very important for you​ to​ know what is​ and is​ not covered in​ the​ policies you​ purchase. Unfortunately most times we never get to​ see the​ actual policy until after we have purchased it,​ often not for many weeks after when we get the​ actual policy in​ the​ mail from the​ company. Sadly few of​ us ever actually take the​ time to​ read completely the​ policy we do get. Generally because the​ language used is​ too complicated to​ understand,​ so we rely on​ the​ trust that we have in​ the​ agent or​ company who sold us the​ policy.
Something that might help and is​ perfectly legal is​ to​ have the​ agent agree to​ and sign as​ part of​ the​ policy a​ statement of​ policy understanding. That is,​ you​ as​ the​ purchaser of​ the​ policy outline what you​ believe is​ covered by the​ policy as​ stated to​ you​ by the​ agent. Adding the​ statement of​ understanding does not in​ any way limit or​ add exclusion to​ an agreed upon policy. What it​ does is​ target specific areas of​ coverage that are supposedly defined in​ the​ policy. And by this statement the​ agent and or​ the​ insurance company is​ agreeing with you​ that these specific items are covered within the​ policy to​ be issued.
Ok,​ let’s say you​ tell the​ agent that you​ will be running a​ small internet based business from your home. Put that on​ the​ paper. you​ tell him your kids have a​ trampoline in​ the​ back yard trampolines are a​ big issue,​ make no mistake and you​ believe by what you​ have been told that these perils are covered under the​ insurance policy you​ are purchasing. Include any and all items you​ can think of​ that might be obscure in​ your insurance needs,​ and add them to​ the​ list.
Include a​ statement that your agent acknowledges these items and areas of​ coverage,​ and then have him sign and date it,​ and you​ do the​ same. Have it​ attached to​ the​ policy; make a​ copy for your records. if​ the​ agent tells you​ there is​ no need for the​ statement,​ that everything is​ covered,​ be cautious. if​ everything you​ listed is​ covered,​ there should be no reason that the​ agent would refuse to​ sign it. if​ the​ home company feels the​ items you​ listed were not covered by policy design or​ exclusion they will make note of​ it​ and add riders adding cost as​ well to​ your policy or​ they will simply deny the​ policy when it​ is​ reviewed. But you​ are still bound legally for coverage until official notice is​ received one way or​ the​ other about your coverage. in​ any event you​ will know where you​ stand.
Insurance companies don’t like these types of​ tactics,​ but if​ more of​ us did things like that,​ it​ would become increasingly difficult for companies to​ hide exclusions that exonerate them from having to​ pay claims.
It’s difficult to​ cover every peril we will face in​ life,​ but with a​ little common sense we can learn to​ spot those things in​ our own lives that might require some special insurance attention.

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