Reading Your Property And Casualty Insurance Policy

Reading your property and casualty insurance policy is an important part of making sure that you are properly insured. Your property insurance policy tells the story of what is covered, what is not, and what is expected of you. If something happened to your house, would you know what to do? Everything should be covered in your policy. However, actually reading the policy can be a little confusing. Although it might be tedious, reading your policy could save you a lot of money. Before you read your insurance policy, keep these factors in mind.

What Is Property and Casualty Insurance?

The property and casualty insurance definition states that it is a line of insurance that protects policyholders from the loss or damage of property and legal liability for damages caused to other people. Your homeowner's policy is a great example of this type of insurance. Your homeowner's policy covers any damage that might occur to your property. In addition to that, it covers any liability from someone getting injured on your property. Property and casualty insurance is critical for anyone who wants to own property in this day and age.

What Is in Your Policy?

Your property and casualty policy has a lot of valuable information within it. One of the first things that you will see on your policy is the type of coverage that it is. You selected the type of coverage that you wanted when you bought the policy and this should match up with what you wanted. For example, it could be against specific perils or against general perils. If your policy covers against specific perils, this means that you pick which perils you want to be insured again. You might select hail damage, fire damage, and water damage. However, anything else that happens will not be covered. This form of insurance is cheaper than broad coverage.

At the beginning of your policy you will usually find a declarations page. This gives you a basic overview of your policy. It will have your name, the address of the property, policy limits, deductible and this type of basic information. This is a great place to go if you just need a quick answer to a question about your policy.

After the declarations page is the insuring agreement. This is a more detailed version of the promises that the insurance company make to you. This is where they promise to insure your property against the damages that you chose.

The next part of the policy is usually the exclusions page. It tells you exactly what will be excluded from the policy. For example, most homeowner policies do not cover flooding. This is where you would find that out.

The conditions are then spelled out which outline exactly what your responsibilities are. You are supposed to report a claim immediately. If you don't, you could lose your rights. You are also to cooperate with the insurance company and do whatever is necessary to repair the property. After that, you will usually find a definitions section to explain any confusing terms in your policy.


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