Many of us have never read our homeowners or auto insurance policies. We apt to leave this chore to our insurance agents and brokers, or family members.
Insurance is a necessary and expensive “evil” and we purchase it to avoid or minimize the financial risk that comes from accidents, floods, hurricanes and other unforeseen events.
As an attorney who specializes in the insurance field, I see claims and lawsuits that are filed where there should be protective insurance coverage for an individual or business, but there is not. Insurance polices are complex and confusing legal instruments prepared by insurance companies and there is little to no ability to negotiate the terms of these policies. It is a “take it or leave it” proposition. Yes, you may be able to shop for lower insurance premiums, but will you obtain the same coverages that are afforded by the more expensive policy.
As an example of an insurance exclusion, you may have dog at home, and you have a homeowners insurance policy. If your dog bites a guest in your home, will you be covered for a personal injury claim under your homeowners insurance policy? Many such policies exclude payment for dog bite claims. As another example, if you have a swimming pool at home and a guest dives into the pool sustaining injury, will your policy pay for the injuries? Many such policies exclude payment for claims that arise from pool accidents. These are just several of many instances where your homeowners policy will not protect you.
The same holds true for business insurance. For example, if you own an apartment building, and there is evidence of mold in one of the apartments and this condition causes respiratory injuries to a tenant who makes a claim against you, will you be covered by your business policy? Many such policies exclude payment for mold related claims.
My best advice is to read your insurance polices carefully and if you do not understand the language, speak with your agent or broker, or contact me at lniedelman@cooperlevenson.com or 609-338-9525.
My next installment will be “Insurance 102” for Professionals”
The content of this post should not be construed as legal advice. You should consult a lawyer concerning your particular situation and any specific legal question you may have.