A guide understanding your Insurance policy

When customers receive their insurance policies, many of them are unaware of what they need to know. Here’s a breakdown of the key terms and phrases included in your insurance policy.

An insurance policy is a contract between the customer (policy holder) and the insurance company that insures that customer. Understanding insurance can be difficult, especially when it comes to understanding your policy’s terms.

A declaration page, definitions, insuring agreement, exclusions, conditions, and exclusions are all standard elements of a policy. Below are simple explanations of what each of these sections entail.

Declarations Page

The essential information on the Declarations Page contains the address, the insuring firm, what?risks?or property are covered, the policy limits (amount of insurance), any applicable deductibles, the policy period, and premium amount.

Definitions

This section explains common terms used throughout the policy. Here are a few definitions you may see.

·????????Claim – The formal request made by a customer to be paid when a loss occurs.

·????????Deductible / Excess – The amount an insurance company deducts before paying your claim. A UGX 100,000 deductible would mean the insurance policy would start paying after they have deducted the first UGX 100,000 they owe you.

·????????Effective Date – The first day of the insurance contract period.

·????????Named Insured – The person or persons designated as the insured in an insurance policy.

·????????Peril – The cause of a loss. Examples include fire, wind, an accident, and acts of vandalism.

·????????Policy – A formal contract outlining the terms and conditions of the insurance provided by an insurance company.

·????????Premium – The amount you are asked to pay for an insurance policy.

·????????Renewal – A new policy that replaces one that is expiring or cancelled.

Coverages

Describes the risks assumed or the scope of coverage for the policy.

Exclusions

Inform the customer of any items not covered by the policy’s area of coverage. This can include hazards, risks, and losses that are not covered by the insurance policy.

Conditions

This part explains the duties and obligations that the customer agrees to follow in order to be covered by the policy. This part is crucial to comprehend.

Endorsements

If applicable, there will be documents attached to the insurance that change it in the endorsement section. When existing coverage is changed, an endorsement is frequently employed. Examine them thoroughly to ensure that you understand the policy.

Insurance is unusual in that everyone needs it, yet some people never use it. Nobody lives a risk-free existence without any mishaps. That’s why, even if you don’t work in the insurance industry, it’s critical to comprehend your insurance policy and all of its sections.