Understanding Your Homeowners
Insurance Policy
Your insurance policy is a contract between you and your insurance company. It spells out exactly what the company agrees to do in exchange for the premium you pay. It also describes your responsibilities and the general terms of coverage. The contract is divided into two basic sections: a declarations page and the policy itself.
The Declarations Page
This section of the contract includes basic details of the agreement. It is important you review this page to ensure that all the information is correct and the coverages you requested are listed. The declarations page includes:
- Name of the insurance company
- Name(s) of the person(s) insured
- Location of the insured residence
- The policy number
- Policy period
- Property covered
- Coverages purchased
- Limits of liability for each coverage
- Applicable deductibles
- Your premium
The Policy
The second part of your insurance contract is the policy itself. This includes:
- Insuring agreements
- Definitions
- Conditions
Section one of your policy describes your property coverages and the losses it covers.
Section two typically includes:
- Liability coverage (protection against claims someone else makes against you)
- Premises medical coverage or accidental injury coverage (pays the medical expenses of others accidentally injured on your property)
Each section includes coverages, limitations, exclusions, definitions, and conditions that apply only to that section.
Make sure you review your declarations page to verify your policy includes the types and amounts of coverage you requested.