Eagle Eye Contents — Fall 2003

Most people have never read them, you should!

Most people do not read their insurance policy when they get it. They may never read them at all. If they do read it, it is because someone told them they didn’t have coverage for a loss.

Many people think that an insurance policy covers everything and are surprised when it doesn’t.

Whenever a client contacts us about a question as to whether something is covered, the first place we start is the exclusions to see what isn’t covered. We would strongly suggest the next time you get a new policy, read the exclusions first. If there are any major surprises, give us a call. Depending on the type of policy, sometimes for an additional charge, coverage can be purchased to remove an exclusion or their may be another policy that will cover the situation.

There are three main reasons exclusions exist;

• The loss or claim is not insurable. Coverage is not offered or provided in general. An example in property is, normal settling, cracking, shrinking or expansion of buildings or structures.
• The loss or claim is insurable for an additional charge if you choose to have the coverage. A good example is earthquake coverage. Standard policies exclude it because most people don’t want to buy it in this area, but they certainly can for an additional premium.
• The loss or claim is insurable under another type of policy. An example is ground water flooding. The standard home or commercial property policy excludes flooding but you can purchase a separate flood policy if needed.