Simple Tips to Understand What You’re Actually Covered For
Reading an insurance policy can feel like trying to decode a foreign language, especially when
you’re already stressed from a claim or accident. But understanding the basics of your policy
doesn’t have to be overwhelming. With a little guidance, you can spot key terms, identify your
rights, and recognize what’s covered—and what isn’t.
Here’s a friendly breakdown of what to look for and how to make sense of it:
1. Start with the Declarations Page (a.k.a. “Dec Page”)
This is one of the most important sections of your policy. It summarizes your coverage, policy
limits, deductibles, and the insured items (like your car or home). Think of it as your insurance
cheat sheet.
2.Understand Common Coverage Types
Liability Coverage – Pays for damage you cause to others.
Comprehensive Coverage – Covers things like theft, hail, or vandalism.
Collision Coverage – Pays for damage to your vehicle from an accident, regardless of who’s at fault.
Uninsured/Underinsured Motorist – Helps if the at-fault driver doesn’t have enough insurance.
3.Look for the Appraisal Clause
This is a powerful tool for dispute resolution if you disagree with the insurance company’s
valuation. It’s usually buried in the policy language, but it gives you the right to challenge the
value they place on your loss. This is also commonly labeled in the policy as “appraisal” or
“right to appraisal”
4.Definitions Matter
Insurance policies have a definitions section for a reason—words like “actual cash value,”
“deductible,” or “total loss” may not mean what you think. Always double-check these
definitions in your policy.
5.Exclusions and Conditions
This is where the company tells you what isn’t covered. Common exclusions include wear and
tear, intentional damage, or pre-existing issues. Conditions often outline what you’re required to
do after a loss—like reporting it in a certain timeframe.
6.Don’t Be Afraid to Ask for Help
If something doesn’t make sense, you’re not alone. Insurance companies write these policies to
be complex. Public adjusters like Teak Claim Consultants are here to help you understand your
rights and fight for what you’re owed.
“The information provided in this blog is for general informational purposes only and should not be
construed as legal or professional advice. Each insurance claim is unique, and individuals should seek
the guidance of a qualified professional for advice tailored to their specific circumstances. Additionally,
some content may have been generated with the assistance of AI. While we strive for accuracy, we
recommend verifying any information before making decisions.”