When it comes to purchasing insurance, it’s important to do your research and make sure that you are getting the coverage you need.

Your insurance contract is the legal agreement between you and the insurance company, and it outlines the specifics of your coverage. Here are 10 essential features to look for in your insurance contract:.

1. Coverage Limits

The coverage limits in your insurance contract specify the maximum amount that the insurance company will pay out for a covered claim. It’s important to make sure that your coverage limits are high enough to protect you in the event of a major loss.

Be aware that higher coverage limits usually mean higher premiums.

2. Deductibles and Premiums

The deductible is the amount you have to pay out of pocket before your insurance coverage kicks in. It’s important to make sure that you can afford your deductible in the event of a loss. Generally, higher deductibles mean lower premiums.

Make sure that you understand how much you will be paying in premiums and deductibles before you sign your insurance contract.

3. Exclusions and Limitations

Exclusions and limitations are specific situations or circumstances that are not covered by your insurance policy. Make sure that you understand what is excluded or limited in your policy, so that you can plan accordingly.

4. Renewal Provisions

Your insurance contract should specify how long your coverage will last and when you need to renew. Make sure that you understand how to renew your policy, and whether your premiums or coverage limits will change at renewal.

5. Claims Procedures

Your insurance contract should specify how to file a claim and what documentation is necessary. Make sure that you understand the claims process, so that you can file a claim quickly and efficiently in the event of a loss.

6. Subrogation Provisions

Subrogation is the process by which your insurance company may seek reimbursement from another party after paying a claim on your behalf. Your insurance contract should specify how subrogation works and how it may affect you in the event of a loss.

7. Cancellation and Non-Renewal

Your insurance company may cancel or not renew your policy for a variety of reasons. Make sure that you understand under what circumstances your policy may be cancelled or not renewed, and how much notice you will be given.

8. Coverage Territory

Your insurance contract should specify the geographic area where coverage applies. Make sure that you understand where your policy will provide coverage, and whether you will be covered when you travel outside of the coverage territory.

9. Insurance Company Ratings

Before signing an insurance contract, it’s important to research the reputation and financial stability of the insurance company. Check out the company’s ratings with independent rating agencies like A.M. Best, Standard & Poor’s, and Moody’s.

10. Review Your Policy Regularly

It’s important to review your insurance policy regularly to make sure that you still have the coverage you need. Life circumstances change, and your insurance needs may change with them.

Make sure that you update your policy as necessary to ensure that you are properly protected.