Seven Words You Never Want to Hear
There are seven words you never want to hear from your insurance company when you need them: Sorry, that’s not covered by your policy.
But how many of us have actually read our insurance policies?
I’ve read a few of them, and let me tell you they are a major snoozefest — and a confusing one at that.
Unfortunately, the reason that I read at least one of our policies was because we were surprised to find out that something wasn’t covered.
Luckily that something was relatively minor, but my takeaway after reading the policy was this: insurance policies are designed to mitigate risk — both risk to you regarding covered items, and risk to the insurance company regarding high claims costs.
And it makes sense. Insurance of all types is big business, and big businesses hire effective lawyers to draw up their policies. They’d be stupid not to.
But we would be stupid to blithely assume that something is covered without actually finding out for ourselves. Which, sadly, probably means reading and understanding the fine print, or at least having your insurance company point you to the correct fine print that states that yes, X is covered. Reading the exclusions page can also be very helpful, because that will tell you in (relatively) plain language what kinds of things are not covered.
For example, what happens if your sewer backs up and waters ruins your flooring, furniture, and parts of your walls?
What will your policy pay for? Replacement furniture? The current value of your furniture? Water removal? Carpet & drywall replacement?
Or will it pay nothing, because sewer backups are excluded on your policy?
Don’t just assume that things are covered. Find out what you’re really at risk for.