Insurance policies are full of legal language and technical terms that can make your eyes glaze over. But understanding your policy is essential. Here is a plain English guide to the key sections.
The Declarations Page
Start here. The declarations page (or "dec page") is the summary of your policy:
- Named Insured: Who is covered by the policy
- Policy Period: When coverage starts and ends
- Property Address: What property is covered
- Coverage Amounts: How much coverage you have for each type
- Deductibles: What you pay before insurance kicks in
- Premium: What you pay for the coverage
Review your dec page at every renewal to ensure accuracy.
Coverage Sections
Coverage A: Dwelling
This covers your home structure. It pays to repair or rebuild your home after covered losses like fire, wind, or hail.
Coverage B: Other Structures
Covers detached structures on your property like garages, sheds, and fences. Usually a percentage of Coverage A (typically 10%).
Coverage C: Personal Property
Covers your belongings inside the home. Check for sub-limits on jewelry, electronics, and other valuables.
Coverage D: Loss of Use
Pays for temporary living expenses if your home is uninhabitable after a covered loss.
Coverage E: Personal Liability
Covers you if someone is injured on your property or you damage someone else property.
Coverage F: Medical Payments
Pays minor medical expenses for guests injured on your property, regardless of fault.
What Is Covered (Perils)
Policies are either:
Named Perils
Only covers losses from specifically listed causes like:
- Fire and lightning
- Windstorm and hail
- Theft
- Vandalism
- Etc. (whatever is listed)
Open Perils (All Risk)
Covers all causes of loss except what is specifically excluded. Generally better protection.
Exclusions
This section lists what is NOT covered. Common exclusions include:
- Flood (always excluded, requires separate policy)
- Earthquake
- Wear and tear
- Intentional damage
- Neglect
- War
- Nuclear hazard
Read exclusions carefully. This is where surprises happen at claim time.
Conditions
This section explains your duties and the rules for the policy:
- When and how to report claims
- Your duty to protect property from further damage
- Cooperation requirements during claims
- How disputes are handled
- Cancellation and non-renewal procedures
Endorsements
Endorsements modify your policy. They can:
- Add coverage (like water backup or scheduled jewelry)
- Remove coverage (exclude certain perils or property)
- Change policy terms
Read every endorsement attached to your policy.
Questions to Ask
After reviewing your policy, ask your agent:
- What is my hurricane deductible in dollars?
- Is my roof covered at replacement cost or actual cash value?
- What is not covered that I might assume is covered?
- What endorsements should I consider adding?
- How does my coverage compare to what I actually own?
Need help understanding your policy? Contact us for a free policy review in plain English.
