Reading and understanding your insurance policy

October 7, 2026

Insurance documents are easy to file away and forget about, but they contain important information about your cover, its limits and your responsibilities as a policyholder.

Taking a little time to understand the key sections can help you see what is covered, what is excluded and any conditions you need to meet for cover to remain in place.

What is an insurance policy schedule?

Among the documents you receive will usually be an insurance policy schedule. This sets out information specific to your particular policy and typically includes:

details identifying you as the policyholder;

a description of the insured item – be that property, a motor vehicle, or other item;

the period of insurance – typically 12 months;

the sums insured and any relevant limits;

excesses to be paid in the event of a successful claim;

the specific sections of cover you have selected; and

any specific endorsements (see below).

Because the schedule contains the details specific to your cover, check it carefully when you receive it and contact your insurer or broker promptly if anything appears incorrect.

What are policy endorsements?

Policy endorsements amend the standard policy wording. They may add requirements, extend or restrict cover, or apply specific conditions. Any endorsements shown on your schedule form part of your insurance contract and should be read alongside the main policy wording.

Some common endorsements you may find in an insurance policy include:

additional security or risk-management measures required to maintain cover – for example, regular inspections of an insured commercial property;

restrictions on the cover available – for example, when a property is unoccupied for longer than the period defined in the policy, certain sections of cover may be reduced or excluded; or

specific conditions applying to a particular risk – for example, escape-of-water cover for an unoccupied property may depend on the water system being drained down.

Understanding policy conditions

Alongside any specific endorsements, your policy is also likely to contain general conditions. These can apply across the policy as a whole and will vary between insurers and policies. Common examples may include:

the policyholder’s responsibility to take all reasonable precautions to prevent loss or damage;

the maintenance of prescribed security measures;

notification to the insurer of material or other changes in circumstances relating to the insured item or items; and

specific additional conditions and requirements whenever a property is unoccupied (as defined by the insurer’s policy wording).

What happens if you don’t follow a policy condition?

Insurance conditions form part of the contract between you and your insurer.

If you do not comply with a relevant term or condition, it may affect the cover available or how the insurer deals with a subsequent claim.

The outcome will depend on the circumstances, the policy wording, the insurer and any applicable law. Check the relevant terms rather than assuming a claim will automatically be covered or declined.