While no bones were broken in a horrific kart racing accident, eighteen year old Ayrton Climo of Reston, VA remains hospitalized and in a coma outside Quebec, Canada. Based on clear policy language, his family is responsible for their personal living expenses in Canada while he recovers. When Ayrton’s well enough to travel, his family is also responsible for the approximately $20,000 to transport him back to Virginia (1).
This is another example why it is important not to assume about what’s covered and not covered when it comes to insurance. When it comes to insurance the DEVIL’s certainly in the details.
Define – the policy carefully outlines what’s covered and what’s not covered. Our premiums pay for only certain things and we cannot assume that what we think of as reasonable or normal are included.
Evaluate – people and procedures are used to evaluate under what circumstances claims are covered or not. The policy definition has boundaries on what to exclude.
Value – insurance is not an endless well to draw money from. The policy defines how much will insurance pay.
Investigate – insurance is not like buying a book or CD off the internet. If you purchase insurance directly, or if its provided by your employer, you have to take responsibility to understand insurance and the policy. If you use an agent, you might have some recourse if there is a question or misunderstanding.
Loss – not everything is covered 100%, and there are some things that can never be replaced. Make sure that the insured clearly understands what is insured, what can be replaced and at what value.
Insurance is paid for when times are good, but claims are paid when times are bad. We need to be clear what is covered, what is not and at what cost. In order to achieve this, the DEVIL certainly is in the details.