How to read an insurance policy: 12 rules
Even the most demanding insurers rarely commit to reading an entire policy. They are usually looking for a specific answer or problem. Companies where they only need to review the individual parts of the cover sheet form and / or the appropriate notes to determine the required response or opinion.
Regardless of whether you are reading an entire policy or just sections, specific “rules” can be applied when reading the policy form 12 to make it easier and faster to find the answer you want. These are not links to read the policy, as there is no link to read a legal document, but only advice on how to correctly interpret and apply the policy.
12 rules for reading an insurance policy
- Check who is considered insured.
- Comment on the policy form.
- Confirm that all forms and endorsements are attached.
- Read the insurance contract first.
- Read the exclusions.
- Read the exceptions to the exclusions.
- If the policy applies to another section, read that section immediately.
- Pay attention to the conjunctions used in a list.
- Pay attention to keywords and phrases.
- Read and understand the definitions of specifically defined terms.
- Understand and ensure that all conditions of the policy are met.
- Make sure that the coverage limits are appropriate for the loss.
This week, the Insurance Academy is hosting a webinar that explains each of these rules and details some of them. In addition to these rules, the webinar examines the reasons for the existence of exclusions and the different categories of exclusions found in most non-life insurance policies.
You can also check our article whether pet insurance is worth it