In insurance, the insurance policy literally is a contract between the insured and the insurance company, which clearly state the coverage that the insurance company is legally obligated to cover. In return for an upfront payment, called the premium, the insured promises to cover certain perils occurring under the policy coverage language in exchange for a fee paid. This fee is often referred to as the deductible or the excess. The insured is fully reimbursed when his/her policy limits of liability are met. When the level of liability is not met, or the insured party decides not to pursue the claim, this amount is refunded to the insured.
One of the first sections of an insurance policy form contains the exclusions. An exclusions section is usually written in fine print and sometimes includes the language “this policy does not include losses that occur due to causes that are not described in the contract.” It is important to fully read this section before signing. In some cases, a policy will provide specific details about what are considered to be non-covered events. Other sections, such as those dealing with the definitions of terms, will detail the exclusions to the policies.
Another important part of an insurance policy form contains the medical payments section. In the medical payments section, an insured individual must list any existing or pre-existing conditions. For each such condition, the insurer must pay a set amount. It is very common for insurers to use the word “occurrence” in the medical payments section, in an attempt to limit the amount that has to be paid. Let us know more information about Janitorial and Cleaning Insurance
Collision coverage limits are also found on insurance policy forms. A typical clause in a collision coverage limit is one that states that the insured vehicle will be replaced if it is damaged or stolen during the term of the insurance policy. Collision limits are extremely important to most drivers. Most states require that a minimum amount of insurance coverage to be carried at all times. If the state requires a certain level of liability coverage, then the collision limits will be included in the liability coverage portion of the insurance policy.
Liability limits are not limited to car accidents, but are generally used in personal injury cases and also in motorcycle and truck accidents. The liability limits will vary depending on the insurance policy. Many times, a driver’s agent will be able to fill a driver’s needs regarding the particular insurance policy. In some cases, a driver may not need to purchase additional coverage, but will still have the choice of how much liability he or she wants to carry.
One final section of the insurance policy conditions is one that deals with the payment of premiums. This is the part where a policyholder must make sure that he or she understands the terms and conditions of the insurance policy. This part is not just a list of features and deductibles that one would have to agree with. Policyholders must be made aware of any limitations of coverage and what the repercussions could be if they do not comply. It is the responsibility of the insured to read the insurance policy conditions thoroughly before purchasing a policy. Having this knowledge ahead of time will help prevent the unforeseen and the possibility of paying more than what the policy actually allows for.