Understand your insurance policy

by Charlotte Lancaster We believe in Quality

Insurance coverage is a legally binding contract between the insurer and the policyholder.

The contract sets out the terms and conditions under which you agree to pay a premium to the insurance company, and the conditions and terms under which the insurance provider agrees to compensate you for loss after an unforeseen event.

Making sure you disclose accurately

Insurers will usually help you put together an accurate assessment of the property or risk that you are insuring. Visit the website for more info related to - Millennials Insurance, Become Insurance POS, Insurance Partnership, and much more.

Several insurers use on-line questionnaires, calculators and experienced customer service representatives to help you to fill in your details accurately.

You will always know more about your property and circumstances than the insurer, and you are obliged to make sure you disclose all of the relevant details accurately.

However, you don’t need to disclose something:

That reduces the amount of danger to the insurance company

Is common knowledge

Your insurer already knows

You don’t know

Anything the insurer tells you it doesn’t need to know or even is not relevant

If you are insuring your home, your insurer may ask how old the property is, whether it has been well maintained, and the construction materials (such as roofing) used.

It’s important that you response all questions as accurately as you can because the insurer will calculate the risks to your premises based on your answers.

Honesty is always the best policy. In case you have not answered questions truthfully and accurately disclosed all the information about your property when you buy, upgrade or renew a policy, the insurer may not be legally obliged to pay out some or all of your claim if something does go wrong.

Terms and conditions

All insurance policies include terms and conditions that describe the ways in which the policy will operate and specify what is included and what's not, what the insurance provider promises to do and what the policyholder promises to do.

Terms and conditions are fundamental components of the insurance agreement.

If you do not comply with the conditions and terms of the plan, you may be in breach of the contract with the insurer. This may mean that the insurer is not appreciated to fulfil its promise and pay out some or all your claim.

Product Disclosure Statements

Australian law requires insurers to include all the terms and conditions of the insurance product in a document, known as the Product Disclosure Statement (PDS).

A PDS can be an important legal document that usually forms part of your insurance policy contract. It is written in basic English and gives a full description of all of the terms and restrictions of the insurance policy. It includes a description of the features, benefits, cost and risks associated with the policy.

The PDS will help you understand the insurance coverage and provide you with sufficient information regarding the conditions and terms, policy benefits and exclusions that will allow you to compare different plans you might be considering and help make an informed decision about whether the policy meets your needs.

Information provided inside a PDS does not take into account your individual needs or financial situation. You should consider whether an insurance plan offers cover that is right for you before making a decision.

Insurance market PDSs may run to dozens of pages. Nevertheless, reading the PDS can help you compare and make the best choice about the policy. The PDS should also offer you all the information that lets you know how your insurer will respond if you incur a loss covered by the plan and have to make a claim.

If you don’t fully understand the PDS you should phone your insurance company and ask for more information. You must be satisfied the policy is what you need before you purchase it.

Policy certificate or policy schedule

When you have supplied the insurer with all of the required information, received the merchandise Disclosure Statement (PDS) and paid your premium, you will end up issued with a document that confirms you are the holder of a particular insurance policy.

The Certificate of Insurance is a formal record that specifically lists information about you, what you have insured, the sum you possess insured it for, how much the premium is and when it is due, and any other options you have agreed to when signing up for the policy.

The Certificate of Insurance must also list any fees or expenses charged, such as for example taxes or commissions. Additional options might include an agreement to pay an excess, which means insurance cover is only provided once the policyholder has paid the first portion of the total sum of the loss or damage. The policy certificate will also list the expiry date of your insurance policy.

The Certificate of Insurance must list any other fees or expenses charged, such as taxes or commissions. Additional choices might consist of an agreement to cover an excess, this means insurance cover is provided after the policyholder offers paid the initial part of the full total sum of losing or harm. The plan certificate may also listing the expiry day of one's insurance policy.

When you receive your Certificate of Insurance you need to read it cautiously to ensure it matches everything you purchased.

You need to tell your insurer immediately if any details on your Certificate of Insurance are no longer accurate.

In the event that you don’t grasp the PDS you should cell phone your insurance provider and ask to find out more. You need to be happy the plan is the thing you need before you get it.