We can all agree that there is no point in buying an insurance policy if it’s not going to cover everything you need it for – right?
Of course, ensuring the policies we buy actually do meet our needs would involve a lot of reading of the small print. And studies consistently show that reading small print is something that the vast majority of us just skip over doing.
The language tends to be overly formal (which is intentional, to try and discourage people from reading!) and it refers back on itself. Just reading the privacy policies that we all agree to on a weekly basis would take up to 76 days a year and that’s before you even get to the finer points. Most of us just tick a box, glance through a summation of what’s covered, and assume everything will be okay.
So as a primer, let’s look at the most common problems people can find with insurance policies. After all, there’s no point stretching your budget to pay premiums for something that won’t provide the cover you require.
Cell Phone Insurance
Many of the new generation of phones make claims to be waterproof; they even base entire ad campaigns around it. No one wants to have to sit through the rice trick to dry out their phone – so it’s a great innovation, right?
You might be surprised to discover insurers will still blame “water damage” for faults – even on phones that make claims to be waterproof or water-resistant.
Employment insurance is meant to cover you if you lose your job unexpectedly, but it might not cover you if you lose your job due to termination. If you are – for want of a better term – “fired”, then you might have been paying those premiums for no benefit. Ensure that you’re covered no matter what the reason for you losing your job.
Obviously there are many different types of health insurance plans, but there is a general agreement on what the standards that should be covered are. However, problems are often found where illnesses or treatments are considered to be self-inflicted.
Need diabetes treatment? An insurer might say it’s self-inflicted because of poor diet. Need to seek the help of the likes of Beachway Therapy Center or a counseling service for addiction issues? They’re not covering that. And rather darkly, if you need help as a result of a failed suicide bid, that might not be covered either. So scrutinize your policies and if you find a wording that makes you uncomfortable, call and ask for verification.
When we see images of flooding on the news, it’s difficult to imagine what it’d be like to live through. It’s made all the worse by the fact that, in some cases, home insurers will refuse to pay out for flooding if you live “too near” water.
Annoyingly, every insurer is different on what they consider “too near” water. This is definitely one to scrutinize the small print on if you live near a river or by the sea. You can still get coverage, but you’re likely to pay a higher premium for it due to the increased risk.