How to Read Your Umbrella Insurance Policy

An umbrella insurance policy is one that incorporates coverage for different types of property such as homeowners and automobile insurance. The benefit of an umbrella insurance policy is that is reduces the policy fees associated with the insurance and places the information about protection in one place. Reading or understanding an umbrella insurance policy is not difficult to accomplish. It simply requires opening the policy pages and understanding what is contained in the protection.

Understanding Policy Provisions

The issued policy, which represents the entire contract between you and the insurance company, contains clauses on the opening pages of the policy that are mandated or required by state law. This is because property and casualty insurance, for which an umbrella policy falls under, is regulated by the state in which it is issued. The information provided in the policy pages includes information concerning your rights and the extent of protection being provided.

Schedule of Benefits

Additionally a schedule of benefits outlines the amounts payable for different losses that occur.  A loss is the reduction in value that you experience when your home or car is damaged, stolen or destroyed due to an accident. The policy will also contain any additional benefits that you may have applied for and include information about what to do in the event of a claim.

 

 

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