No matter how much insurance you might have purchased and secured, it still might not be enough for your life. Plus, in such uncertain times where you deal with a lot of routine perils, your insurance must not be the only financial tool and strategy you use in tricky and high-risk environments. But one thing for sure is that insurance always got your back, no matter how much testing the times are. For instance; insurance can prove to be a savior when natural disasters cause heavy damage to you or your property.
In order for you to realize all the benefits that insurance could help you with in the future, it is imperative to first realize what our insurance holds you liable for. Do you know that there are certain options you could opt for our insurance company to help you get all the essential insurance coverages? When you don’t follow the important point and arrangement of strategies by your insurer, and in the case when you don’t realize your rights in some type of coverages you might lose important coverage options that might otherwise have easily been secured. In the following sections we are going to discuss your important duties as an insuree so that when you need important coverage at a particular moment in time, we will protect you.
Fundamentals of an insurance policy and what purpose does it serve
Whenever you purchase an insurance policy, it is your foremost responsibility to understand what the nature of your selected contract is prior to even investigating what will be your major duties. The insurance policy is basically a contract between you (insured) and the insurer (insurance provider). The fundamentals of this contract work like this: First, you have to pay them a periodic payment that is either monthly, quarterly, semi-annually, and annually. This payment is known as the premium. So, when an accident or damage occurs, as a result, the insurance company will pay you back the specified amount in the contract. The amount that they will pay at such times is basically a compiled amount of all the premiums you have had paid. Apart from paying the premium, you might still have other responsibilities and duties additionally.
It is crucial for you to understand and grasp the fundamental purpose of your insurance coverage benefits. Although financial advisors may provide you with insurance tools, do not mistake property insurance as an investment vehicle, as it is intended for other purposes. Take this into consideration, the rates that you pay to your insurance company for home/property insurance, that amount is based on the total cost which an insurance company will require to restore your property before it was damaged maybe as a result of named perils. So, as previously mentioned the intention of the amount that the insurance company takes from you is not profitability but rather to help you restore your home back to normal.
What are protective safeguards?
These are certain criteria by your insurance provider that your property must meet in order for inclusion to be attainable in case of an unfortunate event. Some examples of protective safeguards are
- In each of your property, you should maintain working smoke detectors and fire extinguishers
- Your vacant properties must be completely secured
It is very important for you to familiarize yourself with any protective safeguards that your insurer might already have had specified in the contract policy. Without the insight, your insurance provider may straight out deny covering the damages if the mentioned protective safeguards are not provided by you.
What are your responsibilities during the occurrence of an unfortunate event?
Following is a list of some responsibilities that your insurance company depends on you to confirm. Not abiding by these responsibilities can result in your insurance provider refusing to pay in an event of a loss. So, you might have to incur costs out of your pocket.
- Notify the law enforcement officials if a breach is witnessed
In a case where a robbery, theft, vandalism, or dubious fire has occurred at your property. The first thing that you must do is report to the law enforcement officials, and then provide a copy of the report to your insurance provider. Secondly, never put your or someone else’s life in danger by entering a property that has been broken into. Therefore, always report such instances to the police or other specialists so that they may carry on their investigation before you enter the premises.
- Protect the property from further damages
When your property has already been damaged due to any cause, the first thing is protecting it from further damages. This will significantly mitigate the losses. Cover all the entry/exit points such as doors and windows, tarp the roof, and lastly board up your property in order to keep people or harsher weather to continue damaging the property. If you choose not to protect it, this will further damage you only, as a result, your insurance provider may deny any compensation or settlement against any claim you may have made.
- Your cooperation is the key
It is beneficial for you to be agreeable with your insurance provider. If you show cooperation and agree to their terms and conditions, the compensation and settlement process will be a joyride for you. But it is not always important to agree to their terms, you may of course differ, but if you do, the rationale of the objection or contraction really matters. They may likewise look at any safeguarded after swearing to tell the truth about any issue identified with the protection guarantee and expect you to approve your responses to the inquiries they pose.
- Report any loss or damage as soon as possible
What this means is that when you have experienced an unfortunate event i.e. vandalism to the property. It is critical to provide your insurer the prompt notice. So, as soon as the insurer has realized your damage/loss, they will be able to cover it timely as well. However, if you stall in the process of communicating any accident you may have incurred, your insurer can deny covering your losses. Most insurance companies provide you sixty-days or two months to communicate an unfortunate event. However, reporting a claim promptly helps you to settle damages fast.
- Provide your insurance company the description of loss/damages incurred
Many insurance companies have a designated form that you can fill in, describing how, why, and when an incident may have occurred. This form will help you initiate and get the settlement on the claim you would have reported in a case of damage/loss. It is important to point here that this form is different from the sworn proof of loss. When you fill in this form, is it also important to write the account of the incident in much detail.
As the details will be helpful to your insurance companies to understand the intensity of the damage that you may have incurred. Moreover, a detailed account will help them cover specific damages against your claims. Small details that may not seem significant to you may be important to your insurer and will help them adjust the loss fairly.