Reading a homeowner’s insurance policy can be overwhelming, especially for a first-time homeowner. It is important that homeowners understand the declaration page in their insurance policy so they know what is and is not covered. After all, a home is usually a person’s most valuable asset.
The declaration page in your homeowner’s insurance policy, typically the first page or pages of a policy, is a concise summary of the coverage provided. Understanding the declarations page will help ensure you get the most out of your policy.
You can quickly see how you and your home are protected from covered losses by reviewing the declarations page. The information provided typically includes the insurance company information, the address of the policyholder and the location of the insured property and the unique number identifying the property and coverages included and your lender if you have a mortgage. Make sure all of the information is accurate.
Here is some other important information included on the declarations page:
- Coverage included section that explains what the insurance includes, such as coverage for your dwelling and anything physically attached to your home, such as a deck, garage or patio. It also includes other structures on the insured location, such as pools, gazebo or fence.
- Personal property, such as furniture and TVs. Certain items, such as jewelry and fine arts, have restricted coverage limits. If you have high-value jewelry, fine arts or other such belongings, you likely will need riders.
- Coverage limits that provide the maximum amount your insurance provider will pay for each type of coverage. Typically, natural disasters such as earthquakes and flooding, are not covered.
- Loss of use is coverage for if you need to stay in a hotel or elsewhere while repairs are being made to your home for a covered claim.
- Personal liability coverage provides protection with listed caps in case you are sued for an accident that occurs on your property.
- Medical payments for others that covers you up to a certain amount if someone is hurt on your property.
- Endorsements, or changes to your policy, are coverages you can add to protect parts of your home not covered by standard insurance.
A declaration page also can be used as proof of insurance.
You should carefully review your declarations page when you buy an insurance policy to make sure the information is correct. You do not want to discover when filing a claim there is an error.
If you’re having trouble reading your policy, an insurance agent can go through it step by step. Agents at The Leliaert Insurance Agency can help you review your insurance to make sure it is up to date and based on your specific needs.