As you already know, your insurance policy is the standard contract between you and your insurance company. What you may not know is what it should include. Over and above determining how much you pay in premiums and excess the contract stipulates the actions both parties should and can take.



Any excess documentation or agreements pertaining to the contract but not expressed in the policy are generally excluded to the contract and not binding unless otherwise ruled by court. This means that when the call operator guaranteed you a 50 percent discount on your premiums but failed to put it in the policy, you pay full price.



Your contract should include:

• definitions of important concepts and language
• the agreement which describes risks (or in what events) the insurer will cover the insured, how much they will cover the insured for and what properties they will cover
• declarations such as identities of both parties, the address of the insured, the limits of the policy, excess or deductibles, the policy period and the monthly premiums
• exclusions such as when the insurer will not repudiate claims based on certain conditions of the property, the event they are covering you for or other agreed terms
• conditions which stipulate what both parties duties and obligations are - failing to live up to this can enable the insurer to reject your claim.

While it is important that you check and agree with the conditions of your insurance policy, there’s often very little you can do to change it because insurance policies are contracts of adhesion. This means the insurance company draws it up and sends it to you after you have agreed to the terms. They are responsible for any ambiguity in the wording but you can make no changes to it. It’s difficult because you often don’t see the contract before accepting the policy, but still worth it in the event of a disaster.