The overwhelming number of insurance fraud and insurance claims in court will have you rethinking whether or not you made the right choice when signing that insurance contract.
This article gives a guide on everything you need to know before signing any insurance contract. Let’s go ahead;
1. What are your insurance companies’ options?
The first step before signing any insurance contract is going through all your options before settling on one.
The insurance industry is a business and different insurance companies have different policies and different premiums.
The best way to know how many options you have and how well these insurance companies are performing in terms of customer satisfaction is by going through customer reviews.
Trust a reliable review website like Britainreviews.co.uk to find all the feedback you need to choosewhat insurance company you should go for.
It will come in handy to read home insurance reviews before deciding what homeowners policy is best for you. Having the right insurance company is the first step before looking at all other aspects of an insurance contract.
Getting insights from other people will also prevent you from being a victim of insurance fraud.
2. Meet the conditions to sign an insurance contract
An insurance contract signed by a person who is not under legal capacity to enter into a contract is otherwise void.
The second step is to make sure that you have made the conditions needed to sign an insurance contract.
Often your insurance provider way counter check that you are under legal capacity to sign the contract.
In other cases, you will be required to sign on behalf of another who is not under the capacity to sign a contract.
3. Read and understand the policy
Having met all the requirements for signing an insurance contract, the next step is to read and understand the insurance policy.
Do not always take an insurance seller by their word because they might have misinterpreted after all it is their job to sell insurance.
Without reading your policy, you stand the chance of signing the contents of a policy or not being aware of or hidden/ undisclosed clauses in a policy.
Even though there is a legal procedure to protect an insured person against an undisclosed policy preventing it from occurring is always the best option.
4. Compare premiums
An insurance premium is an amount you have to pay to your insurance company.
Signing an insurance contract would mean being under an obligation to make payments without fail.
Delay or failure to pay your insurance premium may result in your insurance company claiming no liability when the insured risk attaches.
Take a step and compare premiums from the different insurance companies because some insurance is very expensive when others offer the same coverages at a lower price.
5. Check the coverage
The most important part of an insurance policy is the insurance coverage itself.
The coverage is the risk that the insurance company takes it upon itself to financially cover when it attaches.
Coverages and premiums are read together with such that the more you’re covered the more your premium.
The number of coverages is not the only determinant of how your premium is set. If you live in a flood-prone area, your home insurance premium will cost a lot more than a person in a more secure location.
When looking at your insurance policy have the essential or the basics coverages in mind before taking extra coverage is.
6. Waiting period and claims
Many people expect to sign an insurance contract and immediately file for claims. it is not possible.
Whenever you intend to buy insurance before signing look at the waiting period. This is the number of days weeks or months you have to wait before you can use your insurance.
The shorter the waiting period the better but if you have to choose other factors the waiting period should come last.
Claims processing on the other hand is how fast an insurance company can process a claim and have the insured find the compensation.
Again, the faster the claim processing period, the better.
Conclusion
All the listed factors should be understood together because if you want to find the perfect insurance company you will have to consider their coverages, premium, waiting period, claims processing, and what people think of them.
Do not just go for the one that is the cheapest because you might be getting it at the expense of other important factors.
