Case study: Reading the fine print 2022

Nayana and Arjuna adored being outside in the summer and installed an in-ground pool five years after purchasing their home. Their children learned to swim in it, and the pool was enjoyed by the entire family. A tree fell during a severe winter windstorm, knocking the pool ladder out of place and causing damage to the side wall.

Nayana and Arjuna contacted their insurance agent immediately and lodged a claim for damages. They were taken aback and disappointed when the agent informed them that their policy did not cover a pool.

"However, it is a part of our property," Nayana contended.

""Yes," the agent concurred, "but you failed to notify us when you installed the pool. Swimming pools can be covered through an endorsement—a change to a policy's coverage, terms, or conditions—but are not covered under your current policy."

Nayana and Arjuna learned the following lessons:

  • It is critical to carefully read the policy and understand what it includes and excludes.
  • Once a year, you should review your coverage and adjust it to reflect any new purchases or changes to your property.

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