Do you really understand your insurance policies?
I was having a conversation today and the subject of homeowners insurance came up. This highly intelligent woman had no idea what her new homeowners policy would cover, or even how much it was going to be each month.
The agent had not sent her any information, just a verbal “it will be $70 per month, but will reduce your auto premium by $20 per month”.
Aside from the payout amount “should the house burn to the ground”, she was not told any of the details. How much if someone is injured on the property? Does it cover water damage? What is the deductible?
My advice to her? Call your agent and ask for a breakdown of everything the policy covers. If the agent uses a term you do not understand, ask for clarification. And, continue to ask until you understand exactly what you are paying for.
Do you understand what is covered- or excluded- in each of your insurance documents?
It does not matter if we are referring to health, dental, life, homeowners, auto, supplemental, boat, pet, or whatever.
Know your policies.
There is actually talk that some health insurance policies will either not pay your for COVID-related expenses if you need medical attention , but were not vaccinated, or will charge a higher premium if you choose not to be vaccinated. This is definitely something you want to know *before* you have a large out-of-pocket expense.
If your policy does not have the coverages you need and/or want, shop around and see if there is a better fit for you. This is another good reason to understand the terminology- you want to be comparing apples to apples.
On a scale of 1-10, what is your level of understanding when it comes to insurance and insurance policies?