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What is a policy in insurance?

Updated: 9/15/2023
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6y ago

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An insurance policy is a contract between the insured and an insurance company. The policyholder pays a premium, and as long as the premium is paid and up to date, the insurance company promises to pay (cover) a certain amount of money if whatever is covered happens.

An insurance policy will cover you from accidents, getting handicap, some can be to cover car accident damage or work accidents while others cover health.

Types of coverage:

In an automobile accident, liability insurance covers damage to the other car and any injuries to its passengers, whereas collision insurance pays for what happens to your car that the other driver's liability insurance doesn't cover. Comprehensive insurance covers other things that are not covered by the first two types of automobile policies. So if vandals ruin your pain or a tree falls on your car, comprehensive would cover that.

A life insurance policy exists to help bury you when you die and to help your family to survive when you are gone.

Health insurance covers you in case you get sick. There are different types of health coverage ranging from doctor visits, to hospital coverage, to medication.

Homeowners insurance covers things such as fire, theft, vandalism, natural disasters, mold, water damage, etc., depending on the exact policy.

Renter's insurance covers things such as theft, vandalism to the property that you might be held liable for, etc.

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Yes, your agent or the insurance company can provide with a copy of your insurance policy.


What is Supplemental Insurance?

Supplemental insurance is an additional insurance which provides coverage in excess of your primary insurance policy. For example, Flood Insurance is a supplemental insurance to your homeowners policy which does not cover damage from floods. Or, you might have an Umbrella Liability policy which provides coverage to a higher dollar limit above your auto policy or business policy.


Does an insurance policy supersede a will in nc?

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Another word for terminating a insurance policy?

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