We all deal with insurance – auto, home, flood, renter, life, accident, and so-called “gap” policies. If you are going on a cruise, you’ll be told you had best get “trip insurance”. When you purchase an appliance, you’re asked, “Do you want “the insurance?” The types of insurance you’re offered are mind-boggling. And health insurance…well, let’s leave that for another time.
What do these policies cover? It depends on the terms and conditions of the policy. In some instances, the state insurance commission has issued ‘standard’ forms, such as auto or home. There is a federal program that issues a standard form of flood insurance. However, for most coverages and companies, there is no standard language.
What is covered? The salesperson or broker will tell you one thing, it might last 10 seconds or 10 minutes. There might be an advertisement brochure, 2 or 4 pages. If you decide to purchase the policy, you’ll receive a binder, often referred to as a summary of the coverage. That might be 2 pages, maybe 6 or even 8. Then there is The Policy. Somewhere in The Policy, it will say something to the effect, the only representations the company is legally bound to are the written words in the Policy and such terms and conditions take precedence over anything else that you have been told or anything in any advertisement. The Policy document is sometimes 40 or more pages; three-quarters of which state what is not covered, what the limitations are, and what conditions you must meet to make a claim.
For many people it is a struggle to apportion time to take care of basic needs – working, keeping a roof over your head, paying the bills, taking care of family and health. Time to sit and decipher a 30+ page insurance policy may seem like a waste of that precious time. It’s a matter of priorities. Is the insurance industry taking advantage of you?
If you are in a situation where you make a claim and the carrier has rejected your claim or is offering you less than what you think you deserve, call the Law Office of Elliott Klein, PLLC for an evaluation of your situation.