It all starts at home!

And it doesn’t have to be complicated

Whenever I have had to train new entrants into the world of insurance, we always start with a basic household policy. It is the simplest form of policy for damage to property.

If I can get a new team member to understand the cover provided, they can move on and understand more complex forms of cover and more complicated products like package shop, office and property policies, before moving on to more complicated commercial combined policies, where you choose what you want from an array of possibilities.

So, what is the basic structure and cover in a household policy?

It has all the sections you might expect in any policy, they generally are detailed in the contents and are:

1. General information including identity of insurer
2. Cancellation rights
3. Definitions of words in the policy where it is relevant
4. Cover sections
   1. Buildings
   2. Contents
   3. Personal portable possessions
   4. Legal expenses
   5. Third party liability
5. Conditions applying to the whole policy
6. Exclusions applying t the whole of the policy
7. Complaints procedure
8. Making a claim

Understand the structure of this basic household policy and you understand the structure of most insurance policies you will come across, personal or commercial. You will also get a good understanding of the perils that are covered under any policy giving cover for damage to property, the extent of cover for liability to others and the scope of legal expenses cover.

Obviously the detail will be different for different types of policy, but the structure and basic cover will be the same, understand this and you wont go far wrong #becauseaccidentshappen to nice people all the time.

Have a great day.

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