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Home / Insurance / Read the fine print of supplement policies in Policies – Disaster Area Restrictions and more | Legal insurance blog about property insurance

Read the fine print of supplement policies in Policies – Disaster Area Restrictions and more | Legal insurance blog about property insurance



Many people believe that the declaration page and subsequent coverage and exclusion sections are the important part of an insurance policy. However, additional forms called "approvals" or "riders" can be just as important because they have the ability to change the policy significantly, depending on their language. For example, a recommendation to an insurance contract may add, remove or change the coverage in the policy. Although these pages often come at the end of the contract, they should be read in conjunction with the declaration page and the entire policy.

An example of an additional policy form that may appear as [19659004] a recommendation or a rider ̵

1; and a special one that I want to discuss today – looks like this:

TEXAS PERIOD FILE A CLAIM OR BRING LEGAL ACTIONST US NOTICE – WINDSTORM OR HAIL – CATASTROPHE AREA

This notice does not form part of your insurance contract. No coverage is provided by this notice, nor can it be construed as replacing any provision of your policy (including its claims). If there is any conflict between this notice and the policy (including its approvals), the provisions of the policy (including its approval) shall prevail.

Carefully read your policy, including the recommendations attached to your policy. In accordance with section Texas insurance code 2301.010 (f) we inform you that:

1. In the case of loss or damage in the state of Texas caused by storm or hail in the disaster area, as defined in the Texas Insurance Code, each claim must be filed with us no later than one year after the date of the loss or damage that is the subject of the claim. However, all such claims may be filed after the first anniversary of the date of the loss for good reasons shown by the claimant. and

2. Any legal action brought against us under the Texas Loss or Damage Policy caused by wind or hail in the disaster area, as defined in the Texas Insurance Code, must be taken within the foregoing of the following:

a. Two years and one day from the date we accept or reject the claim; or
f. Three years and one day from the date of the loss or damage which is the subject of the claim.

This supplementary form apparently changes the limitation period by telling the policyholder that they must make a claim within a certain time frame in another way or is prohibited from suing. But when looking at the fine print, two phrases are important, especially for adjusters who can handle such a policy.

First the form says: "This notice does not form part of your insurance contract." Although this form may look like as an endorsement, it should not be construed as part Rather, the form stipulates that it is a notice of applicable statutory provision on statutes of limitations for disaster areas. ability to claim beyond the specified time period. Secondly the provision states that it only applies to legal action against the insurer "caused by storm or hail in disaster area ." In order for this form to and In order to be able to apply to the claim, one must at the same time find out whether the subject area was part of a disaster area. the damage is in a disaster area, the state insurance department will usually contain this information. So going back to the example above, the right area to look at would be the Texas Department of Insurance website. If the area where the damage occurred is not in one of the designated disaster areas, it is likely that this form may not apply.

So, what's the point of all this? It is important that you read the fine print of some of these additions and additional forms attached to a policy. Remember: a recommendation or rider has the option to completely change the coverage in an insurance contract. Some of these forms may act as approvals or riders, but a closer reading will indicate that they may only be intended as a message. And finally, it is important to read the fine print of these forms because the effect of the form can only be applied to a certain type of claim, such as one that is within a disaster area.


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