Top Reasons Your Insurance Policy Might Be Invalid
If you have an invalid insurance policy it most likely will result in a claim denial in the event of a claim or an insurance policy cancellation
There are questions that your insurance agent might forget/neglect to ask you that could invalidate your insurance policy. Coverage can also be disaffected by life changes that went unreported to your insurance company. Don't pay for insurance that will never pay out in the event you need to file a claim. Make sure you are covered correctly and that your insurance policies can truly buy you the peace of mind you deserve.
Insurance Policy Poll
Are you 100% positive all of your insurance policies are set up correctly?
Why your insurance policy might be set up incorrectly
Oftentimes when speaking with your insurance agency you may not actually be speaking with the agent but with an employee. There are many great employees out there however others are not. This is the same as in any industry but in this case it's your life on the line. Many insurance producers are overworked, underpaid and improperly trained. If through a simple mistake, ignorance, lack of time or caring your agent makes certain assumptions when writing your policy it could mean big trouble for you.
There are so many questions on a typical insurance application that most computerized systems will have answers auto-default to what is most common. It could take hours for an agent to ask every question so what happens is they don't. This is why it's important for you as the consumer to know what's important to a policy so if a particular situation applies you make sure it's known. This way you'll be protected and know that your policy is set up correctly and will indeed pay in the event of a claim.
Top Home Insurance Questions - These questions can affect the validity of your policy
If the answer is yes to any of these questions make sure you discuss with your agent. It's possible it may not be pertinent to the particular company that's insuring you. However it may well be the difference of whether your policy is set up correctly or not and in the end may be the determining factor in whether the policy will pay.
- Is your home leed certified?
- If you have a pool does it have a diving board or slide and is it fenced?
- Do you have a trampoline?
- Do you have dogs? If so what breed? Do you have any exotic animals?
- What is your roof type and when was it last repaired/replaced?
- Whose name(s) is on the title of the home?
- Is your home under renovation?
- Is your home for sale or will it be vacant for over 30 days?
Top Car Insurance Questions - These questions can affect whether your policy pays in the event of a claim
The same as with the home, if you answer yes to any of these questions make sure it's discussed with your car insurance agent.
- Are the vehicles on your policy titled in your name or someone else's?
- Are there any other licensed drivers in your household regardless of whether they have their own car insurance policy?
- Have you ever filed bankruptcy?
- Has an insurance company cancelled your policy for any reason other than non-payment of premium?
Do you trust your auto insurance agent?
Do you trust your insurance agent?
Insurance Terms Glossary
- Insurance Glossary
Important Insurance Terms
Glovebox Organizers - Keep your car insurance and registration handy in a specialized wallet
Tips to Protect Yourself
Always look over the insurance application that you're asked to sign. Check to make sure all information is correct. If your agent tries to tell you they made a "white lie" to save you money insist they correct it or find another agent. They are simply trying to sell you a policy and aren’t being concerned with your long-term welfare.
Don't try to pull one over on your agent. Many people believe that they can leave out pertinent information like the fact that you have a teenager in the house driving your vehicle. They understand that this would affect rates and/or eligibility so they conveniently leave the information out. This might seem like a good idea until your pay for the policy for years and then said teenager gets in an accident and the claim is denied. Not being upfront only will hurt you in the end.
Whenever your agent speaks with you on the phone no matter how brief, they are probably taking irrevocable time stamped notes in a suspension diary. They are doing this to protect themselves. This protects the agent against situations like someone removing a vehicle from a policy only to make a claim on that vehicle later and deny that they had requested the vehicle be removed. It makes sense for the agent to do this but I think it also makes sense for consumers to do something similar. If your agent ever makes a warranty or claim make clear notes on whom you were speaking with, the date, and specific details of the conversation. Keep these conversation notes in your insurance policy file.
Everything you could ever need to know about personal insurance
Helps you determine what types of policies and what coverage you need, how to avoid insurance traps and loopholes, how to get it all at an affordable price and more.
© 2012 Melissa Miotke