Policy Schedule
What Does Policy Schedule Mean?
A policy schedule is a summary of the coverage provided by your insurance policy.
Typically, it is found on the first page or first few pages of the policy package you receive from your insurance provider.
This part of the insurance contract identifies the policyholder and outlines the property and individuals covered, the coverage amount, exclusions, deductibles, and the payment mode and schedule. It may also include other important coverage details such as additional clauses, warranties, and specific conditions related to your policy.
Although the policy schedule covers key information that most insured individuals need to know, it is not a standalone document. While the schedule offers a general overview of your coverage, you should read it alongside the full policy wording to fully understand your coverage and avoid potential misunderstandings.
The policy schedule is also referred to as the schedule of insurance.
Insuranceopedia Explains Policy Schedule
In insurance, the term “schedule” refers to a list. While it can be used in various ways within the industry, in this context, a policy schedule is a list that details the coverage you have purchased. Examples of details included in a schedule are:
- Insurance limits
- A list of those insured
- The deductible
- A list of covered property
A policy schedule is a document that forms part of the insurance contract between the insurer and the insured.
People seek insurance to transfer the risk of a potentially large financial loss to an insurance company, in exchange for a smaller monthly or annual payment called a premium. However, many individuals are disappointed when they file a claim and discover that the coverage is less than expected. This often stems from how insurance contracts are drafted.
Insurance contracts can be lengthy and filled with terms and phrases that might confuse those who are not insurance professionals. Therefore, when receiving an insurance contract, the insured should read it carefully, paying particular attention to the details in the policy schedule. Important sections to focus on include:
- The property covered
- The limits of insurance
- Any special terms and conditions (such as exclusions, warranties, and conditions)
If any part of the contract is difficult to understand, the insured should consult an insurance professional. This ensures that the necessary coverage is in place and helps avoid misunderstandings when it’s time to file a claim.