Insured perils and exclusions

Many people get the impression that their insurance policy covers all types of situations that cause a losss. This is not correct. The perils that are covered are stated specifically in the policy. You should also read the exclusions, as they state specifically the perils that are not covered.

For example, some property or car insurances may not covered losses caused by flood. You have to read the policy wording to be sure about the cover.

You also have to be careful about the statements made by the insurance agent. They agent may tell you that certain types of losses are covered, when it is not really the case. The agent may make the wrong statements either by mistake or intentionally (i.e. to get you to complete the sale). You should ask the agent to show you the policy wordings on the insured perils and exclusions, just to be sure. Make sure that the wordings are clear to you.

You  can read more about the insured perils in my FAQ, available at www.tankinlian.com/ask.aspx. Search for
"insured perils".

Tan Kin Lian