DEHART INSURANCE GROUP

Guide to insurance

Insurance is a way to manage unforeseen risks. The instrument by which it does this is a written contract between an insurer (the insurance company) and a policyholder (the individual or entity that gets the policy)—these documents are the insurance policy.

An insurance policy remains in force for a specific period, known as the policy term. When the term ends, you usually have the option to renew the policy, terminate it, or buy a new one. When you buy an insurance policy, you should understand what it covers if there are any exclusions that limit coverage, and the responsibilities you must fulfill for the insurance company to reimburse losses. 

One of your responsibilities is to understand the basics of your insurance contract and to read the policy fine print. An insurance contract typically will have these basic parts:

  • Declaration Page: The insurance declaration page is the first page of your policy and it identifies policy basics, including the insured, what risks are covered, the policy limits, and the term of the policy. 
  • Insuring Agreement: The insuring agreement summarizes what the insurer promises to do in exchange for your premium. 
  • Exclusions: The exclusions section comes after the Insuring Agreement and highlights what your policy doesn’t cover. 
  • Conditions: The conditions section has provisions that qualify or limit your insurer’s promise to reimburse or perform. The insurer can deny a claim if you fail to meet these conditions.

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