Often found in the Product Disclosure Statement (PDS), a policy wording refers to the detailed document that lays down the terms, conditions and scope of your insurance policy. 

It tells you what your policy covers, what it doesn’t cover and what you should do if you’re going to make a claim. 

Why Should You Read the Policy Wording?

Understanding the policy wording can help you make smarter choices to protect your assets. 

Here’s why it’s worth your attention:

• Know What You’re Paying For: Reading the policy wording helps you confirm that your policy matches your risks and needs, whether it’s covering your business equipment or your home’s contents.
  
  
• Avoid Nasty Surprises: The policy wording lists exclusions clearly, so you can avoid assuming something is covered when in reality it’s not.
  
  
• Understand Your Obligations: By understanding the policy wording, you’ll know your responsibilities (e.g., reporting incidents within a certain period of time). In turn, you can avoid disputes.
  
  
• Make Informed Decisions: Comparing policies based on price alone isn’t enough. Reading the wording allows you to compare policies properly and choose one that best fits your situation.
  
  
• Maximise Your Claims: Knowing the claims process in the policy wording can speed things up. It tells you what proof you need and when you should act.

Read the Policy Wording Now

A policy wording can be considered as the key to understanding how your insurance policy works. 

If you take the time to read it or ask a broker to guide you through it, you can avoid problems when making a claim and make informed decisions that can best protect you.

Got any questions? Get in touch with us today at Tank Insurance, read our blog for info on other matters and take a look at our free Health Check eBook.

Remember that insurance doesn’t have to be stressful and complicated.