Ever wonder what an insurance contract is or how it works?

An insurance contract is a legally binding agreement between you and an insurance company. The insurance company’s obligations is to cover you against insurable events (theft, accidents and so on) and your obligation is to pay the insurance company insurance premiums.

Most insurance contracts are completed over the phone with no pen and paper.

How does an insurance contract come about?

As soon as you and the insurance company agree to the terms of the insurance contract, it comes into existence. The main aspects of an insurance contract are the property to be insured, when the insurance cover starts and how much you pay as a monthly premium.

Many insurance companies allow insurance contracts to be done over the phone, and the details of the contract (sometimes called a schedule of insurance) are then emailed and/or posted to you.