At Insurance Litigation Group (ILG), we have seen firsthand the importance of reading the fine print in contracts. Many homeowners believe that their insurance policy will cover all losses, but this isn’t always the case. Insurance companies often use exclusions and limitations in their policies to restrict coverage and reduce their payouts.
That’s why it’s essential for homeowners to carefully review contracts and understand the key clauses. Here are a few of the most important clauses to look for:
- Coverage limits: The coverage limits in your policy specify the maximum amount of money the insurance company will pay for a covered loss. It’s important to make sure that your coverage limits are high enough to protect your home and belongings.
- Deductibles: The deductible is the amount of money you have to pay out of pocket before your insurance company starts paying for a covered loss. Deductibles can range from a few hundred dollars to several thousand dollars.
- Exclusions: Exclusions are causes of losses that are not covered by your insurance policy. Some common exclusions include damage caused by: intentional acts of an insured, flood, water leakage that occurs for more than 14 days, pests and vermin, and earth movement.
- Limitations: There are limitations on coverage as well. Some policies provide coverage for water losses, but cap the coverage to $10,000.00, regardless of the policy limit. Some policies will cover long-term water damage if it is hidden, but most do not.
- Duties of the insured: The duties of the insured are the things that you are required to do to maintain your coverage. Some common duties include paying your premiums on time and notifying the insurance company of any changes in your property or risk profile.
If you have any questions about your policy, be sure to contact us at ILG. They can help you understand the key clauses and make sure that you have the coverage you need.
Reading the fine print in your contract may not be the most exciting thing to do, but it’s worth it to make sure you have the coverage you need to protect your home and belongings. If you have any questions about your property insurance policy, or if you want to review your policy with an experienced property insurance attorney, contact us today! We can help you make sure you have the coverage you need to protect your home and belongings.