The main reason for Insurance Policies complexity may be surprising. If you're so inclined, read on...

Insurance policies are complicated because they are legal contracts covering a broad range of diverse situations and conditions. For example, every insurance policy must provide clear distinctions regarding: [1]

• Who is Covered - Who is Not Covered
• Definitions of Terms
• Limits, Extensions and Options of Coverage
• Conditions
• Exclusions
• Duties and Responsibilities of Each Party

​Insurance contracts of all stripes have evolved through time, experience and case law. Though companies have tried to write them in more understandable language, they must be crafted in such a way as to stand up to legal scrutiny.

Insurance policies are considered "contracts of adhesion" [2], meaning that the insurance company (insurer) controls the creation of the document. The purchaser (insured) only has the power to refuse it. Because of that relationship, grey areas in the contract's language will fall in the favor of the insured. [3]

It may seem ironic, but CLARITY (from a legal standpoint) is one of the main reasons that insurance contracts are so complicated.

Best Regards.
[1] Insurance policy[2] Adhesion Contract Definition | Investopedia[3] A Contract of Adhesion