In Iowa, lawyers, accountants, family members, and government all encourage individuals to avert and alleviate risk through the purchase of insurance policies. This is with good reason, in the event of an accident or disaster, the out-of-pocket expenses can skyrocket.
To this end, there are insurance policies in Iowa covering anything from your home to travel, your car to your health. For nearly every activity or event in your life, there is a way to insure the risks involved. For many people, this raises the question, “can an insurance policy even cover my expenses?”
The Short Answer
The answer to this question is both straightforward and longwinded. Here is the straightforward answer. All insurance policies cover expenses. However, when you purchase a policy, regardless of the type or coverage offered, that policy covers the potential for expenses. It is not until an accident, injury, or disaster, such as a tornado that damages your home, that an insurance policy stops covering the potential for expenses and begins to reimburse you for actual costs.
The Definition of an Insurance Policy
The basic function of an insurance policy is to transfer the risk of big expenses from an individual or business to the insurance company. In some ways, insurance companies in Iowa are betting that the accident, injury, or disaster will never occur, or that it will only happen to handful of the individuals and businesses that it insures.
The company weighs the likelihood of an event and a claim being made under the policy, and then determines how much an insurance policy will cost to the individual or business. Individual risk factors, such as the current negligent condition of a home, can make a policy more expensive, while a positive factors, such as a perfect driving record, may lower the cost.
In return for taking on this risk, insurance companies require payment of a premium. The premium is required, whether or not the risk comes to fruition. The premium is the source of income for the insurance company, and as indicated above the bet is that more money will come into the company through premiums than going out through claims.
How to Know What a Policy Covers?
An insurance policy is required to state the events it covers and the coverage amount for each specific event. For instance, a car insurance policy will state that it covers collisions. In addition, a comprehensive car insurance policy in Iowa could also cover a fire, flood, vandalism, or other event. The events covered will be directly stated in the policy. However, at times the amount of information provided in a policy can mask exceptions to coverage. This is why it is important to review a policy carefully.
The amount of coverage is also stated in the policy. For instance, car insurance that covers collisions will state the amount of coverage for damage to property in a collision and there will be an amount covering injury to third parties from a single accident. It is essential to pay attention to the specific coverage amounts to know what you are purchasing.
Despite the legal requirements in Iowa regarding clear statement of coverage amounts and events in the insurance policy, many individuals are taken by surprise when an event falls outside their policy. Therefore, it is important to address any questions, concerns, or uncertainty with a policy before paying the premium.
How to Make a Claim?
Normally, the process for making a claim under an insurance policy begins with a phone call. In some instances in Council Bluffs, an insurance company will cover the upfront costs related to an injury or event, but other times it is necessary to initiate a claim for reimbursement. Where to start should be stated on your policy document, but a helpline with your insurance company is a useful resource.
Speak with an Attorney About your Insurance Claim
If you have a claim related to a personal injury, car accident, or other injury, but are uncertain how to file or initiate a claim with your insurance company, it is time to speak with a qualified lawyer. Walter P. Thomas at Telpner Peterson Law Firm LLP handle cases involving personal injury and accidents, including insurance related claims. Our office can be reached via phone at 712-309-3738.