It’s a well-known fact: people sometimes forget to read the small print. But what about the text written in regular typography that you’re also supposed to read? Turns out that sometimes we forget about that, too.
Your insurance policy has many sections that you must understand thoroughly in order to get a clear idea about your coverage and its potential limits. Today we’ll talk about one of those important sections, known as the Policy Definitions.
Words that Matter
The Policy Definitions or Policy Wording, is essentially a glossary stating the meaning of the key terms used in your policy. This is is one of the most important sections of your policy along with the Declarations Page or “Dec” Page, the section that states the basic facts about your policy such as your name and the premium.
When you read your policy, pay attention to the words that are emphasized. Some companies use quotation marks or italics, while others use bold text or underlining to do this. However, words given this special treatment are key terms and they should appear in the Definitions section of your policy.
Avoid Future Headaches
The purpose of stating the meaning of the key terms of your insurance is to head off future controversies. These terms can have a significant impact in the scope of coverage, so you should make sure to understand them and ask for clarification when necessary. Doing this may save you headaches in the future. Your guideline to determine if a term is defined ambiguously is to ask yourself if the word in question has two or more reasonable interpretations.
Keep in mind that policies that provide multiple coverage may contain more than one wording section. Also, don’t forget that some important terms may also be defined in other parts of your policy, so you must read the entire document carefully.
Knowledge Is Power
When it comes to insurance, knowledge is power. Understanding the wording of your policy will get you off to a good start, but you need constant guidance from an expert in order to get the most out of your insurance.
At Delgado’s Insurance we have a wide array of insurance products to protect you, your family and your most valued possessions.
We have locations in Riverside, California, and Bloomington, California. Contact us today by email, telephone (951-361-0084, 909-421-9003) or through our social media accounts on Facebook, Twitter and LinkedIn to learn more about our services and our mission to help you get the insurance that best fits your needs.
