With the recent natural disasters in Western North Carolina, we’ve been getting a lot of questions about what an insurance policy actually is—and more importantly, what it covers. Whether you’re dealing with storm damage, flooding, or other unexpected events, understanding your insurance policy is crucial. So, let’s break it down.
What Is an Insurance Policy?
At its core, an insurance policy is a contract between you (the insured) and the insurance company. You agree to pay a premium (your cost for coverage), and in return, the insurance company agrees to provide financial protection for certain covered losses. These policies define exactly what’s covered, what isn’t, and how claims are handled.
Key Components of an Insurance Policy
- Declarations Page – This section includes key details like your name, policy number, coverage amounts, and policy period. Think of it as a summary of your policy.
- Coverage Details – Your policy outlines specific protections, such as coverage for your home, personal belongings, liability protection, and additional living expenses.
- Exclusions – Just as important as knowing what’s covered is understanding what isn’t covered. Some natural disasters, like floods and earthquakes, often require separate policies.
- Deductibles and Limits – Your deductible is the amount you must pay before your coverage kicks in. Your policy limit is the maximum amount your insurance will pay for a claim.
- Conditions and Responsibilities – This section explains your obligations, such as reporting claims promptly and taking reasonable steps to prevent further damage.
Why Reviewing Your Policy Matters
Insurance isn’t a one-size-fits-all solution. Coverage can vary widely depending on your location, the type of policy you have, and even the specific insurer. That’s why it’s important to review your policy with your agent before a disaster happens. Some key questions to ask include:
- Do I have coverage for natural disasters common in my area? (Hurricanes, floods, wildfires, etc.)
- What is my deductible, and how does it impact my claim?
- Are there any exclusions I should be aware of?
- Do I need additional coverage for valuables, rental properties, or business assets?
Don’t Be Afraid to Ask Questions!
Insurance policies can be complex, but you don’t have to navigate them alone. If you’re unsure about what’s covered or need to update your policy, reach out to your insurance agent.
At Brevard Insurance, we’re here to help you understand your coverage and ensure you’re properly protected. If you have questions, don’t hesitate to give us a call—we’re happy to walk you through the details so you can feel confident in your coverage.
If you’re in Brevard, NC, and looking for local insurance expertise, we’re here to serve our community with personalized, reliable guidance.
Stay informed, stay protected, and don’t wait until disaster strikes to understand your insurance policy.