SIMPLE TIP NUMBER EIGHT:
READ/UNDERSTAND YOUR INSURANCE COVERAGE
I have worked in many sides of the insurance industry. We can too easily over estimate how protective “insurance” may be. Actually, the term “insurance” as applied in actual “insurance” contracts is often misleading. We are not “insured” in today’s world. We have only expensively purchased limited “coverage” for very specific eventualities. (Big word, I know. Defined as “bad stuff that could happen”). An example I had involved a contractor who was accused of causing flooding on his own customer’s property. Naturally, he had paid a lot of money for years for “liability insurance”. When the contractor told his “insurance” company, the “insurance” company responded “you are not covered.”
??? What the ___???
His “liability” insurance only covered eventualities if he caused flooding on a neighbor’s property, not his own client’s. If he wanted liability coverage for his own client’s property, WELL that premium would be extra.
NEXT TIME, INSURANCE, continued; A glimpse at what an insurance “policy” really is.