Tips in Understanding Policies, Warranties, and Disclosures

Do you understand your warranty? If you were in an auto accident do you understand your auto insurance policy? Your home has received water damage due to a backyard flood are you covered?

These questions and many others you sometimes find out too late that you did not have a certain coverage or the warranty doesn't cover accidental damage. In this article I give you tips in understanding your coverage.

Signature

When you sign something you are attesting to the fact that you agree with it and understand what you are signing. Its amazes me the majority of people who have some kind of insurance policy but have never read it. Its a little too late to need your policies coverage only to find out your policy doesn't cover for that. Never sign anything until you are aware of what you signing and what it covers.

Read your policy or warranty

If you read your policy and warranty and have some trouble understanding some of it get someone to explain it to you. This would be better to understand this before you sign so if it doesn't cover something you can purchase a rider or a warranty that does cover it. If you live in a flood plain than you would naturally make sure you have flood insurance on your home. Most standard home owners policies doesn't cover for flood damage.

Explanation of what is covered

Most policies and warranties will have a page further explaining the coverage. For example in a computer manufacturers warranty it may include lifetime warranty on software but than when you call for tech support for a problem with a software package you find out it doesn't cover how to use the software but its functioning. Since the computer manufacturer does not license the software they can only uninstall and reinstall it fresh.

Exceptions or what is not covered

There is always exceptions to coverages. Like for example in a life insurance policy if the insured dies within the first 2 years as a result of suicide there is no coverage. Sometimes deaths within the first 2 years is looked at differently whether its a suicide or not. Auto maintenance warranties for example when it comes to replacing brakes certain parts are covered but not all. You might as well call this the fine print. You need to know exactly what your coverage entails so your not surprised. You can't tell them that you did not understand what you were signing cause once you sign on the dotted line you are responsible. Remember signing means you understand and agree.

Understand what your signing so that you are not sorry later. Never hope that you are covered for something know whether your covered. Its your responsibility to know.