In insurance, often the insurance policy is simply a contract between you and the insurance company, which describe the specific claims that the insurance company is legally obligated to cover. In return for an upfront fee, called the premium, the insurance company promises to settle for certain loss resulting from perils listed under the specific policy language in exchange for the fee. The coverage provided by the insurance policy varies from company to company. Often, the minimum coverage is provided to the named insured party. If a third party should be harmed during or even prior to the insurance policy’s expiration date, that party may assert a claim against the insurance company and obtain compensation for its damages.
Insurance policies are written either in English or in a language the insured understands. To give an example, assume that you are applying for homeowner’s insurance coverage in UK. On your application form, you will have to indicate that you understand the contents of your homeowner’s policy, namely that it covers the loss of home property due to theft, storm damage or fire. Another important area to be covered is the declarations page, where you must indicate all the items that are excluded, which must be clearly indicated.
Once you have received your insurance policy, read it carefully to see what exactly is covered. For example, some insurance policies provide coverage for damage caused by war, explosions, flood, lightning strikes and hurricane attacks. Others have provisions covering liability resulting from medical malpractice, vehicle accidents and defective products. It would be a good idea to consult with an expert, such as a lawyer, before taking a final decision on a particular policy. Most companies offer free initial quotations for a term period. You can also get information from a local insurance broker.
Once you have chosen a particular insurance policy, review the forms provided by the company. Review the declarations page to ensure that the contents it contains are in line with your policy. If you notice any information that is contrary to your declarations page, contact the insurance company as soon as possible, preferably within twenty-four hours, to discuss the issue. Your agent may ask you to sign a separate declaration page for each type of loss, but this is not mandatory. Learn more information about Shopping Center and Strip Mall Insurance
Once you have completed the declarations page, review the contents of the insurance policy to ensure that the coverage has been correctly filled in. This is very important because if a mistake is made on the form, it would invalidate your insurance policy. Furthermore, reviewing the contents of your insurance policy is another useful way of checking if the total cost of rebuilding your property is covered by the insurance contract. If not, you could consider raising the premium to cover the entire cost of rebuilding your home. In addition, you could ask the insurance provider to add emergency accommodation costs onto the amount that is covered by the insurance contract.
Once you have completed the insurance declarations page and insurance contract, be sure to keep a record of every premium paid, including the amount of coverage that is provided with the insurance contract. If you move out of your home, make sure you obtain a new insurance policy to replace your old one. If you raise the insurance premium prior to moving out, you will be required to cancel your insurance contract. Before taking up the new policy, check out the prices of other insurance companies offering the same type of insurance coverage. Also, consider the total cost of rebuilding your home following the loss. If you do not have enough cash to complete the repairs in full, you should consider increasing your insurance contract.