The Basics of Insurance Policies

Most people are unaware about most of the insurance policies. An auto policy is little different from that of life insurance and that will be different from a long-term care or disability policy. While this can be confusing for someone interested in purchasing multiple insurance, the good news is that all of them share a few common items. Once you understand what they are you should be able to comprehend which one is which, no matter what type of insurance it is.

The first thing to understand is that an insurance policy is a written contract, an agreement, between the insured and the insurance agency. Every policy has an insuring clause which is, basically, a generalized statement of what coverage the insurance company is responsible for. If you pay the premiums and make sure you keep to the conditions within the wording, the insurance company agrees to make payment to you in the instance of a loss. Essentially it means any financial risk is deflected from you and transferred to the insurance company.

Every plan is also sectioned off, with each section defining the terms, types of coverage, the rights and responsibilities of parties, any exclusion or limitations and any other types of optional coverage you have selected. The first page usually begins with a summary of the agreement between the insurance company and you.You can explore the web, if you need to know more about Frisco Insurance Agency.

This Declarations Page gives the information about who is covered, what's covered the applicable dates for coverage and the amount of any premiums. It will also have the policy number listed, your name and address, and the name and address of the insurance agent. It can also have other important information such as coverage limits.

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