Share on facebook
Share on twitter
An insurance policy is a legally binding document that sets out the terms and conditions of the policy, obligations and those of the insurance company, as well as what events are covered and what you will be paid in case the insured event happens.
An insurance policy is a contract between you and your insurance company that describes in detail what risks you are insured against and also what risks are beyond the scope of the agreement – these are so-called exclusions.
When you first get an insurance policy, it may look daunting, as these documents can be as long as 20 pages. Most people feel overwhelmed reading them as they are full of technical jargon and written in dry, tedious legal language.
But it’s essential that you understand the main features of your insurance policy as this will ensure you get the coverage you need – not less and not more. The last thing you want is to buy is a policy and assume you are covered only to discover that your policy has exclusions or exemptions impacting you later.
To help you get your head around insurance policies, we dismantled these highly technical documents and simplified the most important things you need to understand before signing the contract.
Insurance policies may start by declaring what it covers in very wide terms and then proceed to restrict, limit, and exclude coverages, or it may go straight to list only the perils that are covered. It will typically have the following sections: a declarations page, coverage form, and endorsements. Together, these sections lay out all the legally binding details of your policy.
Figuring out what insurance policy to buy requires that you sift through these long documents often written in a technical and obtuse language. Still, make sure you understand the main aspects of the document to ensure that your coverage best fits your needs. Otherwise, you may find yourself underinsured when you end up not being covered for your losses or you may be overinsured, which means that you are paying for the coverage you don’t really need.
Let’s make sure you’re protected. Vero analyzes your information using powerful models insurance companies use to get a holistic view of your risk. Understand how much you really have to lose, what you need to protect and your gaps.
Life is full of risks. To your family. Your assets. Your future. The problem is traditional solutions that propose traditional answers, one policy at a time.
Vero’s fast and free Protection Plan is an unbiased analysis of all your risks. We’ll recommend what insurance to buy — and which policies you can safely cancel to save money.
Insurance is essential, yet the premiums add up quickly and it takes knowledge and analysis to truly lower the costs. Learn more.