Published On: Fri, Aug 4th, 2017

Insured Against Nothing: The Vital Truth Of Fine Print

If you consult any guide about properly formulating your life and financial future, then you will quickly find many reasons why you should have insurance. It helps to protect you in the event of the unthinkable; gives you a safeguard should things not go entirely to plan. It’s your safety net and parachute; so even when money is tight, it’s always worth making the insurance payments nevertheless.

Nothing in life comes without a catch, and the catch that relates to insurance is a pretty big one. On the surface, insurance seems like an unbelievably good deal. Whether it’s for big purchases or just your cellphone, it’s an easy sell to a wary customer. You pay a small amount of money and, in exchange, are guaranteed a fix, repair, or replacement.

Things are never that simple. You may have insurance, right now, that you think covers you for every eventuality in the sudden – but that’s not always the case. The major problem with insurance is also its biggest benefit: the security. We think we’re protected and thus we do foolish things. For example, did you know these mistakes could invalidate some of the most popular insurance policies?

 

 

  • Driving through flood water. If you ignore warnings or what is obviously incredibly high flooding, then your insurer will say – rightly, realistically – that you weren’t paying due care and attention.

 

 

  • Using items for non-domestic use. If you knock your laptop off your knee while at home, then that’s not a problem. Drop it on your way out of a work meeting, and have never informed your insurer that the laptop is used for work purposes? They’re not going to pay out.
  • Door lock mistakes. When you fill out an insurance quote form, you’ll be asked about the type of locks you have on your doors and windows. Don’t just guess – in the event of a burglary, the locks will be inspected, and if they’re not what you claimed they were then your policy is invalid. This applies even if you actually under represented how secure the locks are.

 

As the above suggests, when it comes to insurance, it’s all in the fine print. So how do you avoid falling foul of these issues, and guarantee that your insurance is as valuable as you think it is?

 

#1 – Read The Fine Print

No, seriously. Seriously. Read it. Get a magnifying glass if you have to and make sure you read every single word. If there’s something you don’t understand, call the insurance company and ask for further guidance – and make sure you write down the name, time, and details of the person who took your call and what the outcome was. You have to know this stuff.

Try and remember that you’ll only have to do this once per year, if it helps the task whizz by any faster. Get it done and then you won’t have to worry about it for a whole 12 months.

 

#2 – Be Careful With Multi Policies

If you’re opting for vehicular insurance provided by Johnson, then you might decide to take advantage of the coverage they offer for home or multiple car insurance. It’s a simple solution; one company, one claims procedure, one payment from your bank account.

These policies are hugely beneficial, but don’t think it gives you a reason to escape doing the leg work – or… eye work… if we’re being specific – when it comes to reading the fine print. Make sure you study the details down to the last letter to ensure you’re happy with every aspect of every part of the policy.

 

#3 – The Accidental Damage Issue

Insurance is meant to protect us against any of the issues that might befall the average citizen. So, you might figure, that means if you knock the TV off the wall accidentally, your home insurance will cover you for it.

Be very aware that this isn’t necessarily the case. You’d be covered if the TV was shaken off its holdings by an earthquake, or consumed in the event of a house fire – but not if you’ve just accidentally broken something. This might seem counter-intuitive, but it actually makes sense. From the insurer’s point of view, they are looking to minimise their financial risk every time they offer you a policy. It’s statistically unlikely that you’ll go through a natural disaster or a fire, but it’s rather likely that someone in your household will be clumsy and break something.

You can usually add accidental damage as an extra, but this will raise your premium. It’s probably worth it, however, if you’re a generally clumsy person!

While insurance might be something of a minefield, it’s nevertheless an important safeguard of your financial future – just do your homework and all will be well.

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