Why You Should Read Your Insurance Policy

The insurance company answers to its investors – and the secret most of the companies don’t admit is that you are not the investor. The goal will be to get you to settle at the lowest possible expense to the insurance company.

As long as they aren’t acting in bad faith, then they are justified in their actions.

That doesn’t mean you are going to be happy with where they want to settle.

Knowing what’s in your policy will help you get to a place where you are happy or at least content. Don’t expect the insurance adjuster to know what is right for you. Learn for yourself.

A friend recently shared that he’d had his heating and cooling unit go out. He and his wife had been getting by because the cost was so much. When he shared with another friend, that friend knew that the insurance company had added the central units to some policies. When he looked at his policy, he saw that he was covered.

Had he known his policy, he would have saved him and his wife a few months of discomfort.

You don’t know what you don’t know, and you can’t work with getting what you deserve if you don’t know what that is.

Know More by Knowing Your Insurance Policy

  • Read your insurance policy. It’s a good idea to read through your policy every year – especially if you make any upgrades or do any remodeling during the year. You have to be sure the coverage you have is enough, and you also want to be sure you not over-covered.
  • Keep your policy in an easy-to-access location – in this day and age, it might be a good idea to keep it on your phone. When something happens, you need to be able to access the details of how you are covered.
  • Learn the lingo. Like most industries, insurance has phrases that mean something unique to the industry. Having a basic understanding of replacement cost, cash value, and other terms in your policy.
  • Take time to understand the different sections of your coverage. Your policy will have limits for each one of the sections – for instance, your auto insurance may cover medical, car rental, repairs, and even passengers’ personal property.

The more you know about your insurance, the better prepared you will be to handle trouble when it shows up.

It took us two hours to hike out from the house to safety after the tornado hit on Easter night. Once we were safe, I made a call to the insurance company to start the claims process. As soon as the local office opened, I went to get a cash advance to help us get a room and some necessities.

I had taken the time to know what we had available because of past storms. Because I knew what I knew, we were able to immediately get a place to stay and start the process of finding a rental car. Not only did I need to know about the home owner’s insurance, but also three vehicles. Every little bit I knew made it a little easier to get things moving.

There is still a lot to learn, and with each learning opportunity, we are a little bit closer to getting things settled.

What tips do you have for dealing with insurance?

The Mom

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