What Does Policy Schedule (schedule of insurance) Mean?
A policy schedule is the outline of the coverage provided by your insurance policy.
This is usually the first page or first few pages of a policy package you might receive from your insurance provider.
It is the part of the insurance contract that identifies the policyholder and details the property and persons covered, the amount of coverage, the exclusions, the deductibles, and the payment mode and schedule. It may also include other key coverage information like additional clauses, warranties and conditions that are specific to your policy.
Despite covering the key information most insureds need to know, the policy schedule is not a standalone document. Reading the schedule gives you a general idea of your coverages but you’ll need to read it alongside the actual policy wording if you want to really understand your coverage and avoid any unintended losses.
Policy schedule is also known as a schedule of insurance.
Insuranceopedia Explains Policy Schedule (schedule of insurance)
A schedule is an insurance term that basically means a list. There are many ways this term is used in the insurance industry but in this case, a policy schedule is a list detailing the coverage you have purchased. Examples of details listed on a schedule includes:
- Limits of insurance.
- A list of who is insured.
- The deductible.
- List of the property that is covered.
A policy schedule is a document that forms part of the insurance contract made between the insurer and insured.
A person wants to be insured because he or she wants an insurance company to cover a potentially large future risk in exchange for a small monthly or annual fee called a premium. There are many people who get disappointed when the time for making a claim comes and the insurance company offers coverage that turns out to be less than what they expected. This is often because of how contracts are drafted.
An insurance contract is often long and there might be terms and turns of phrases that will confuse those who are not really insurance professionals.
So, when an insurance company provides the contract, the insured should read it thoroughly, focusing particularly on the details found in the policy schedule. Important parts to focus on including:
- The property covered.
- The limits of insurance.
- Any special terms and conditions applied to the policy (such as exclusions, warranties, and conditions.)
If he or she finds something difficult to understand, he or she must ask an insurance professional. This helps you ensure you have the coverage you need and avoids misunderstandings when it comes time to make a claim.