Simply put, insurance coverage analysis consists of a thorough review of your insurance policy in order to determine if you are covered for the claim you plan to submit. The process is far from simple. Legal language is used, and a law firm that is familiar with coverage issues will provide you the analysis you need in order to determine whether or not your policy covers you for your claimed loss.
Why it is Important to Have an Experienced Law Firm Perform Coverage Analysis
There is a whole body of law dedicated to coverage analysis. It takes an actual human being to do this analysis. No automated computer review of your policy can identify the individual terms unique to each policy. In review of your policy, here are just a few examples of what an attorney will analyze.
- Who is covered? Is only the named insured covered or is there also coverage for other family members? If it is a homeowners’ policy being analyzed, does it cover losses involving a home-based business?
- Was the policy in effect at the time of the loss? This is carefully looked at by insurers. Policies usually go in effect at 12:01 a.m. on a prescribed date. Depending on the nature and time of the loss, this can be vitally important information.
- Is there coverage for the specific type of damage? For example, in some homeowners’ policies, there is no coverage for flood, but coverage for wind damage. If the roof is blown off the house and water pours in causing extensive damage, establishing that the damage was covered by the wind clause of the policy will make a difference in collecting or not collecting from your insurer.
- Is the specific property that was lost covered? The declaration page of the policy will list what items are covered under the policy. Some car insurance policies require specific identification of the vehicle that is covered. Other policies cover “any newly acquired vehicle.”
- Are there relevant exclusions? You may think you have coverage, but review of a list of exclusions may say differently. For example, policies can exclude from coverage certain persons, specific types of damage and other exclusion clauses.
In some cases, an insurer may deny your claim, but an insurance coverage analysis identifies a term or clause that shows coverage.