How to Read Your Insurance Policy and Understand What Is Actually Covered
On their face, insurance policies can be complex and difficult to understand. When you need help understanding your rights under your insurance policy, a California insurance claims attorney at Quincey Law is here for you and can use our extensive experience to assist.
The language of your insurance policy is crucial to your understanding of what actually would be covered in the event of a claim or loss. Before you file a claim, you should have an understanding of the language of your policy to know whether the insurance company would pay your claim. Of course, the insurance company could have a different interpretation of the language of your policy which could force you to file a lawsuit.
Working with an insurance company to get a claim paid can be difficult, and Quincey Law can help. Our insurance claims attorney can take the time to speak with you when you need to file a claim or take legal action to force the insurance company to pay for your losses.
An Insurance Policy is a Contract
When you purchase insurance coverage, you enter into a binding contract between you and the insurance company. You have the obligation to pay premiums and to follow certain rules when you are filing a claim. In turn, the insurance company must pay for losses that are covered under the terms of the policy and do not fall under one of the policy exclusions. Just like any other contract, it is crucial that you take the time to read and learn what you have agreed to, so you can know what to expect.
Pay Attention to the Definitions
Words do not always mean what you think in an insurance contract. Words mean what the insurance company says they do. There will be a section in a policy that is titled “definitions” that states the meaning of words that are used in your policy. Review the major words in this section that will be used repeatedly in your contract.
Focus on the Coverage and Exclusions
When you buy insurance, you are paying for something. Namely, you are giving the insurance company premiums so that they cover certain losses. You need to understand what is covered down to the exact word. Your coverage may govern your own actions and how you protect yourself from loss. In addition, you need to read the fine print, which is often where the exclusions to the policy are found. The insurance company will often affirmatively state what things are not covered by your policy upfront, and they could argue that your claimed damage is not actually covered because it has been excluded.
No matter what type of insurance policy you have purchased, there will always be a detailed section on what is covered. For example, if you have health insurance, the policy will contain Evidence of Coverage that willdetail exactly what falls under your policy. If you have homeowners insurance, there will be a detailed list of every part of your home (including potential possessions) and type of damages that will be covered. There may also be individual riders that you have paid for that could provide additional coverage for things not already listed in the policy.
Learn the Conditions and Endorsements
Beyond exclusions, the insurance company could also impose other limitations on their coverage. The payment that they make is conditioned on a number of occurrences. One major condition is that you continue to make premium payments. Further, coverage is conditioned on the occurrence of a certain event. Endorsements modify the coverage that you have purchased by either adding or taking away certain things from the policy.
You have the obligation to review your coverage before you purchase it to know what you are getting. Not knowing that an exclusion existed, or that you had to follow a certain procedure will not help you when it comes to a dispute. You need to be prepared ahead of time by reading all of your policy, including the fine print.
At the same time you read the policy, you should also have a general sense of the insurance company’s own obligations that they have when you file a claim. The insurance company cannot impose unreasonable delays, nor can they misrepresent the terms of your policy. You can even hold the insurance company directly liable if they deliberately fail to follow the requirements of your contract.
Contact a California Insurance Claims Law Firm Today
Arrange a free initial consultation with a California insurance claims lawyer Nick Quincey today when you need help dealing with an insurance company. Quincey Law is just a phone call away, and you can reach us today at 866-945-9175 or contact us online.
Nicholas Quincey is the founder of Quincey Law, and has over a decade of experience of handling insurance claims denials and personal injury matters for people throughout California. We have pursued insurance bad faith claims for people involving life insurance, health insurance, homeowners and disability insurance. We also work with clients and families who need assistance filing and pursuing a personal injury matter. Learn more here.