Lawyer Monthly - November 2023

insurance may initially save money, it could ultimately result in denied claims and uncovered expenses, imposing a larger financial burden. While some people may be satisfied with a regular insurance plan, others might require a customised manuscript policy to cater to their unique needs. Manuscript policies are personalised for the insured’s specific requirements and are typically found in large commercial accounts or individuals with uncommon risks. However, using a manuscript policy comes with risks such as confusing terminology and potential disputes over coverage. Additionally, the regulations for manuscript policies differ from state to state, potentially resulting in less oversight and regulation compared to standard policies. Therefore, it is crucial to consider these risks before opting for a manuscript policy. Insurance companies are increasingly refining their policies by modifying exclusions in response to legal and regulatory changes, making it harder for policyholders to have their claims accepted. By modifying the terms and conditions of policies, and specifically targeting certain claims that previously would have been covered, policyholders are facing denied claims right from the start. Mother Nature versus Homeowner: Unleashing the Power of Your Insurance Policy Mother Nature is a homeowner’s worst enemy, causing damage through unavoidable collisions with nature. Weather events are the main cause of home damage, leading homeowners to seek insurance coverage. 70% of claims are weather-related, emphasising the need for insurance against these risks on residential properties. Many people fail to recognise that a single large-scale catastrophe, like a storm, can be categorised as multiple events such as flooding, wind damage and rainfall. What makes this significant is that insurance companies often loss of use and liability can leave homeowners vulnerable before and after disasters. Homeowners are advised to keep comprehensive records of all home improvements and renovations done during the year. These improvements have the potential to affect the coverage required for your home and also enable your insurer to identify any safety or security features that might make you eligible for discounted rates. By prioritising cost over coverage, individuals may unknowingly compromise their own protection. Homeowners depend on insurance brokers and agents as their trusted advisors when selecting policies and ensuring adequate coverage, especially as many homeowners never read their insurance policy. Agents might often prioritise sales and policy costs, focusing on offering lower premiums and emphasising cost as the primary factor when selecting a policy, rather than ensuring the policy will effectively protect the homeowner from financial calamity. While opting for cheaper FEATURE OF THE MONTH 15 Just because something is not explicitly mentioned in the policy does not mean it can be interpreted or added.

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