What Does Insuring Clause Mean?
The insuring clause is an integral part of any insurance contract and one that all insureds should pay close attention to. The insuring clause is the section of an insurance policy that outlines the risks assumed by the insurer. In other words, this clause details exactly the risks the insurer is liable for paying and defines the scope of the coverage.
Although it is called an insuring clause, it is actually more likely a collection of clauses for all the different perils, losses, and additional coverage an insurer is offering you in the insurance policy. For example, on a typical home insurance policy, your insurance clauses might state that you have coverage for:
Detached Private Structures.
3rd Party Liability.
- Defense Costs & the Right and Duty of the Insurer (to defend you from liability claims)
When you receive a copy of your policy wordings from your insurance company, you should make sure you understand the insuring clause(s) to grasp what is and is not covered by your policy and for how much.
If you have questions about any of the terms contained within, you should contact your insurance provider for clarification. The last thing you want is to find out you do not have coverage for something when you have a claim because by then, it is too late.