What is the function of the definitions section in an insurance policy?

The function of the definitions section in an insurance policy is to clarify the specific terms and language used throughout the policy. This section is crucial as it ensures that both the insurer and the insured have a mutual understanding of the terminology that is integral to the contract. By defining terms, it minimizes ambiguities that could lead to disputes over coverage, responsibilities, or other important aspects of the policy. Given the complexity of insurance language, having clearly defined terms helps consumers and adjusters apply the policy correctly and understand their respective rights and obligations.

While the other sections of the policy focus on various aspects, such as coverage details, limits, and claims processes, they rely on the definitions provided in this section to convey meaningful information. Thus, the definitions section serves as the foundational building block for interpreting the entire insurance policy.