P.J. Miller
Many policyholders believe insurance contracts are a nearly impossible-to-solve puzzle for the average person. So, what makes them so hard to understand?
An insurance policy is a legal document that has to hold up in court. That’s why you see lots of legalese and specialized terms in an insurance contract.
“Simple language opens things up to ambiguity,” said partner P.J. Miller. “And ambiguous contracts are prone to be torn apart by attorneys. In court, ambiguous policy language can work in favor of the consumer.”
Miller added: “Years ago, insurance contracts were easier to understand. But over time, new laws, regulations, court cases and differing opinions started to add complexity to the contracts.”
In other words, insurance contracts are complicated because they have to cover all their bases in case of a lawsuit or a large claim. Increased regulation has pushed insurance companies to make the contracts denser, making them difficult to read for the average policyholder.
Before you pay for any insurance policy, be sure to take the time to read and understand it. Get help if needed, so that you know what coverage you are—and aren’t—paying for.
Questions about purchasing an insurance policy, or understanding your current one? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.