I have been asked by many people, “why are the insurance policies so hard to read and understand? Is it because the insurance companies are trying to “hide” something from us?”
The answer is no. You have to realize that an insurance policy is made up of a collaboration from the underwriters, agents and attorneys. It certainly feels like the policies are written only by the attorneys! Truth is, it is a true partnership of the above parties deciding what type of risks are going to covered, at how much a premium should be charged for each risk, and how the risk will be paid. A lot of thought goes into this process so that the insurance company makes a little profit, but mostly, that the named insured is protected to the point of having “peace of mind.”
Remember too that the insurance companies are under strict regulation from the state and Federal governments. So therefore the insurance policies have to be worded in simple legal language so that there is no “gray” area as to what is covered and for how much.
When I first looked at an insurance policy during my basic training days at insurance class, I looked at it with total intimidation. Then, as I went over the specific parts of the policy, I began to see a trend of recurring things in each section. There are “definitions,” “conditions,” “what is covered,” and “exclusions.” Beyond that, there is the actual verbage that explains what is covered and under what conditions.
Believe it or not, many people do not take the time to read the policy from “cover to cover.” Of course, it can be “boring” text to say the least! But if you clear your mind, read and take in all that the words describe, it is not complicated to understand. Try it! Then, if you have any questions, or “what if” questions, you can call your agent and he or she will gladly find out if something is covered or not and under what circumstance.
Answer: Insurance policies are really not too complicated!
For all your insurance needs, call Doug Seide Insurance at 480-443-1952.
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