Buyer Beware: Read Through the Insurance Policy Carefully

An insurance policy is a contract between you and your insurance company.

• Check form numbers against the pages of the policy to determine that you have a complete policy.
• Ensure the name and address of the insured are accurate. A policy cannot be transferred to another without the consent of the insurer (exceptions do exist).
• Ensure coverage includes all the areas that you require.
• Ensure coverage limits are adequate.
• Check the location(s) listed to ensure they are accurate.
• Compare editions dates on the form numbers with the edition on the policy pages and the effective dates on the policy.
• Ensure the insurance company is identified properly.
• Read the conditions carefully. Many policies require the insured to comply with all policy conditions before claiming on the policy. Some policies may also limit suit to within one or two years after a loss.
• Clarify any words that are unclear or not defined in the policy. Look up any unclear words in a dictionary to understand their common meaning. If the word has more than one common meaning, the courts will likely adopt the meaning that is most favourable to the insured.

Utmost Good Faith

Insurance contracts rely heavily on the insured providing complete and accurate information. Deliberately misstating or excluding important information could result in denied claims and policy cancellation.