As we are entering a new Year, add one more thing to your New Years’ Resolutions. We know we hardly ever keep them, but this one is important, because, it might save us hustle and needless discussions. How often do we complain “I didn’t know this was excluded…” or, “why do I have to pay for something that…” or “I thought I told you I had ***** in my home” ….. so many more questions – often concluding in the so-called “small print”, a conjecture of misleading… not just regarding insurance, but all contractual bindings.
When you start your collaboration with an insurance company, you will be receiving a contract. As all contracts, it contains terms. It also contains conditions, exclusions, endorsements, amounts covered, deductibles and a whole set of binding words to both you and the company. At Renewal, you will be receiving a Renewal Schedule only (unless there have been amendments to your original Policy, in which case you should receive yet another long policy / contract), and you should make sure that there are no changes re your previous one, or, if they are, look and absorb them. Do they reflect what you wanted to insure?
A serious company will always be available to explain anything incomprehensible (as contracts are sometimes..), in simple words, so you know what you signed up for.
Here follows a short list of what we thought might be the most helpful in reading your policy. Just start reading, like it is an interesting novel, it definitely is not, but it might make a difference to future, unpredictable events – the reason that you took out this policy.
- Deductibles -The Deductible is an amount that you, the Insured, will have to remit, in the event of a loss. In simpler terms, you have to know that Insurance compensation awarded to you will be minus the amount shown as this amount.
- Limits of Liability – These limits appear on your Schedule if your Insurance is the kind of Public/ Product or General Third Party Liability. Note the amount shown as “per claim” or “in the aggregate during the Period of Insurance”, they might be the same or different. Depending on whether your Policy relates to a simple Home Insurance or an intricate Professional Indemnity Insurance Policy, the Limits are important, and they should reflect what YOU would imagine could happen, and whether these Limits satisfy your personal/ family/ professional requirements.
- Exclusions – especially in relation to weather and climate- related phenomena, and what applies regarding your property outside. As all contracts – an Insurance Policy contains exclusions – some are irrelevant to you, some are standardised, but if you are insuring your home / business, it is vital that you know what is excluded in relation to weather conditions, especially now that Climate Change is infiltrating our world. Extreme weather conditions – storms, tempest, flood, cyclone, hailstorms, are part of our lives, and Insurance Policies are being adapted accordingly. When the Policy was issued, you declared what you wanted covered outside – so time to read the “small print”. Will it be covered in the case of an extreme weather phenomenon? Can it be covered? If yes, you should take it up with your insurance professional. You should be aware that property outside might never be covered, because of its nature. But what can – please make sure you have declared an adequate Sum Insured for it!
- Claims conditions / notifications – Things happen and we want to fix them asap. But – if you have an insurance policy in place, inform your insurance professional. Do not rush to repair works beforehand – If you are expecting compensation for your loss/ damage from your Insurers, they have the right to know of your calamity, and what it what it will likely cost. This avoids experts’ loss adjustments and a lot of paperwork…. So, if you have an insured peril causing damage to your property, inform your Insurers first. That is why we are here! You will receive guidance on how to move forwards repairing your damage.
- Mitigation of damages – having said that, an insurance contract always provides that you should take care to minimise any loss/damage caused due to any peril. Therefore, if there is anything you can do to prevent further damage, it should be done. But- the Insurers should still be notified. This is actually the gist of good faith and transparency – The Insured is in trouble, they do have insurance cover in place, the insurance professional, whether company/ agent/ broker, must be at the same page. You, as the Insured, will take any measures you need to protect your property, and keep records so that the Insurers can handle the claim in a fair manner.
- Declaration forms for wages – Regarding compulsory Employer Liability Insurance. Make sure you inform your Insurers, each Period of Insurance – what your company has remitted as wages, based on Social insurance Contributions.
- Retroactive dates – a matter regarding Professional Indemnity Insurance. Make sure that your Insurance Policy notes a date – that is the date when you have first obtained this kind of Insurance Cover. PI Policies are claims-made and provide cover when the Insurer is informed there is a claim, just after the Insured is informed – no matter the date of the negligent act – the “date” is the year the alleged negligent act or omission occurred.
- Basic covers/ additional covers with sums insureds and deductibles – In the market, there are a few very complicated Policies – usually those involving Businesses, Jointly-Owned Buildings, Multi-Story Buildings, etc. These policies are like needlework – precise, adapted to need, ornated! Perhaps like a jigsaw puzzle. Make sure you let your insurance professional know what you need. Administrative committees and Joint Owners should be in line on what they would like covered. And – we are ready and committed to explain everything !
HAPPY AND SAFE NEW YEAR!
