Wading through the insurance fine print on your auto, home, life, or renter’s policy may be low on your list. I am right there with you! But wow, how it can save you money and help you avoid nasty surprises down the road.
By studying the insurance fine print, you will find out:
What is Covered And Not Covered By Your Insurance Policy
A costly mistake that many people make is assuming that something is covered when it is not. For example, many homeowners policies do not cover water entering the home from outside.
We are not just talking floods. If a window leaks and causes damage to your walls and flooring, this often will not be covered.
Life insurances policies may have exclusions that invalidate benefits if death occurs while engaging in some high adventure activities. Auto policies have their own restrictions
If you know the restrictions of your policy, you can make informed decisions about whether you would like to purchase additional insurance coverage to address uncovered risks.
What The Coverage Limits Are For Your Insured Property or Person
For example, say you experience a kitchen fire that leads to replacing all of the appliances. The insurance fine print for a homeowner’s policy will detail whether you get replacement cost or actual cash value. In other words, replacement with comparable one at today’s cost or replacement with depreciation deducted.
The difference in reimbursement rates between the two can be substantial.
What Coverage Adjustments In The Insurance Fine Print Are Made When Policy Renews
Each time that a policy coverage period expires and a new coverage period begins, the terms of the policy can (and most often do) change. As I am writing this, I am referencing my own auto policy and I see that upon renewal, 4 different coverage provisions have changed. Three of these changes reduce the amount of coverage that I have in specific situations.
Proactively staying on top of them is definitely the financially savvy way to go.
What Factors Are Taken Into Account When Determining Your Premium
Many policies will state major factors that are taken into account when determining your insurance payments. Did you know that a number of insurance companies now consider your credit rating as part of the calculation of your premiums?
What Potential Policy Discounts You May Be Missing Out On
Ways to save on on your insurance premiums may be mentioned in the insurance fine print. My insurer reminds policy holders in each renewal packet that the company offers active duty military premium discounts. Also, noted is that premium discounts are available for vehicles with approved anti-theft devices. Check out your policy to see discount opportunities available to you.
Reading your insurance policy’s fine print may not be entertaining, but it sure is an eye-opening and financial savvy thing to do.
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