Insurance is taken out through adhesion contracts that regulate the relationship between the insurer and the insured party. These contracts are structured through particular conditions and general conditions. In some cases, special conditions are also included.
The general conditions are common to all policies in a specific insurance line of one insurer, such as home, car or shop insurance.
The particular conditions specify or individualise the insurance contract for a specific policyholder. For example, in home insurance, this is where the policy states who the policyholder is, which home is insured, including location, dimensions, year of construction and whether it is a main or seasonal home, the value of the contents, theft protection measures and other details.
As mentioned above, some policies include special conditions clauses for specific cases where the client and insurer agree to detail something in particular.
General conditions usually come in a small booklet inside the policy folder. This is where we find what is often called the small print of insurance.
What Do General Conditions Contain?
Each company has its own format for each set of conditions, and some insurers even integrate them into the same document as the particular conditions. As a general rule, however, they usually include the following:
- They determine the object of the insurance.
- They define the territorial scope.
- They list the covers that can be arranged and explain what each one covers. The fact that all covers are described does not mean they have all been taken out, as this is specified in the particular conditions.
- They include a list of definitions of the terms used in the policy.
- An important section is usually the exclusions. In addition to being included in the explanation of covers, it is also common to have a section on general exclusions.
- The general conditions also explain the rules for assessing damage and the indemnity rules for claims.
It is important to read the policy, not only the particular conditions but also the general conditions. In fact, it is increasingly common for clients to review them together with insurance offers before deciding whether to take out a policy.