Insurance Blog

How many times have you asked yourself, “what does my insurance policy actually cover?” Let’s be honest.. probably not that many times! We set up the policy, pay the monthly bill, and don’t give the details of our insurance policies that much thought. But when the time comes to file a claim or you make a purchase and you’re not sure whether the insurance you have covers it, that’s the time you pull out that insurance policy.

An insurance policy is a lot of pages and you have no idea where to start. Let us break it down for you so when that time does come to go over that policy, you have no reason to stress!

For the most part, insurance policies have the same layout:

1. Insuring Agreement
   1. Outlines what the insurance company agrees to cover
2. Definitions
   1. Defines certain words and phrases used throughout the policy
3. Coverages
   1. Home, detached buildings, personal property, etc.
4. Exclusions
   1. Defines what isn’t covered
5. Conditions
   1. Contains the provisions of the policy

Unfortunately, it’s not as simple as just these 5 sections - each section is divided into different categories. Let’s use the example of the Homeowners 3 policy (this is the most common type of Homeowners insurance) to explain.

Within the Homeowners 3 insurance policy, Section I talks about the property coverage while Section II talks about liability coverage. Only spend time reading the part of the policy for which you’re trying to find coverage! Don’t worry about Section II if you are only interested in trying to figure out what property coverages you have.

If you just finished building a detached storage building in your backyard and you aren’t sure whether it’s covered under your Homeowners policy – go straight to the “Coverage B – Other Structures” section! In that section you’ll see if there are any “Special Limits of Liability”, “Perils Insured Against,” “Exclusions,” or “Conditions.”

There is a TON of information within a policy, but insurance companies have tried to lay it out in the best order possible to help you determine 1) what is covered 2) what is excluded and 3) needed from you and your insurance company.

MOST IMPORTANTLY, don’t forget we are here as your insurance agency and to be your trusted advisor. We are only a call or email away when you have questions about your insurance coverages!