The Importance of Understanding Your Policy

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Let’s be honest – insurance policies are long and cumbersome, and with the mountains of paperwork on your desk and in your inbox, the thought of reading through yours is most likely not at the top of your list. However, setting aside some time to review and really understand it at a deeper level could be beneficial to you in the long run. And you don’t have to do it alone. Working with your agent to understand the details of your policy can you save you time and some unwanted headaches down the road.

Know It Before You Need It

Instead of waiting until you have to file a claim to understand the type of coverage you have, invest some time now to gain a deeper knowledge of your policy. Knowing the limits and deductibles before you need to file a claim will not only make the process go more smoothly, but will ensure the right coverages are in place based on the risk being insured. Ask your agent to explain the exact terms and conditions of the contract. Know what your responsibilities are, as well as those of the insurance company, so there are no surprises when it comes time to file your claim.

Terminology

Contractual language can be difficult to interpret and the technical jargon used is not always the most user-friendly to read. In most policies, there is usually a section that outlines certain key words along with their definitions. Even so, if there is terminology that doesn’t make sense, or if the definition is vague and still leaves room for interpretation, don’t hesitate to ask for clarification. It could be the difference between getting a claim paid or denied.

Where are the Gaps?

Along with all of the things that are covered, it’s also important to know what’s not covered. Every policy will have exclusions. While it may be tempting to breeze past this section, there may be specific exclusions in your policy that could be beneficial to have. Some companies offer add-ons that you can purchase at a minimal cost, which could provide better coverage for your specific needs. While reviewing the exclusions, ask your agent about any add-ons they offer.

Things Change

On the flip side, you may be paying for coverage that you don’t need. Things change over time and the coverage you needed when you originally purchased your policy might not be serving you any longer. By doing a little research, you may discover that your internal business model has been adjusted and your needs are different. Maybe the types of risks you are insuring have shifted and there’s a more appropriate type of coverage out there for this risk. There are several factors that can contribute to the need for an updated or revised policy, so be sure to review the changes that have occurred to ensure that your coverage is still right for your financial institutions current needs.

Insurance companies and their offerings change as well. By staying in contact with your agent, you can learn about new options that are available and take advantage of new products and services.

Use Your Agent

Your agent is there to help you. They are the experts that can guide, support and point you in the right direction as you navigate the ins and outs of your policy. Keep the lines of communication open and don’t underestimate the importance of understanding your policy before you need it. To speak with an agent, call us to schedule an appointment at 1.888.600.4436.