Generally speaking, all insurance is intangible. No matter the type, whether it’s auto, home, flood, or life insurance; you can’t touch, see, or feel it. Going into a situation, you don’t even know insurance is present unless you’re told so.
It’s not a problem that you can’t feel or sense an insurance policy. You know that as long as you pay your premiums on time, your policy will come in handy should some incident occur. More than likely, you have proof of your payments and a copy of a policy put away with other important documents.
However, sometimes you need a form of physical proof to show that you’re insured. But should you not have a policy or something with a current date to show that you are making your premium payments on time, a certificate of insurance would come in handy.
The Insurance Certificate
Now here’s what a certificate of insurance is. It’s a document that’s given out by an insurer that includes information about the specifics of your coverage, based on what type of insurance you have. It discloses the policy owner’s information, information about what or who is insured, and even what types of incidents and the amount of coverage for them.
There are several situations where the certificate will come in handy. A few are when you are registering a car, getting a loan, or if you need to prove to a business or person that specific liabilities you may be exposed to, are covered. You could use your policy to prove something like this, but depending on the circumstances you may need to present documentation that has a current or more recent date.
It’s important not to confuse an actual proof of your policy with a certificate of insurance. Neither are required for you to receive the benefits of your policy, the certificate simply provides a basic overview of your benefits. It doesn’t get into the specifics of your policy agreement such as the exemptions or any other terms along those lines. Therefore, don’t rely on your certificate of insurance as a guarantee of insurability.
One last thing to keep in mind is that a certificate of insurance is not a mutual agreement. You can’t write directives or assignments on it. It’s just a message that shows you’re currently insured to anyone that wants to know. Contact us to get more info about this.