Reading a declarations page, field by field

When a new policy arrives, the page worth reading first is the declarations page, often called the “dec page”. It sits at the front, usually one to three pages long, and it records the facts of your particular policy: who is covered, for what, for how long, and up to what amount.

This guide describes what is typically on it. It is general information. The layout, the labels and the rules behind them vary by insurer and by state, and your policy and your insurer decide what is covered. If a field on your page does not match what is described here, your documents are right and this guide is not.

What the page is, and what it is not

The declarations page is a summary. It lists the choices made for your policy and points to the forms that carry the actual terms. A coverage that appears on the page is only as broad as the policy form behind it. A coverage that does not appear is not part of the deal, whatever you assumed when you bought it.

Keep it with the whole policy, not on its own. If you only have the page, ask your insurer or agent for the full set of forms.

Who and where

Start with the identifying details.

• Named insured. The person or business the policy is written for. Spouses, partners, business entities and trusts are listed differently, so check that it matches how you own the property or run the business. A mismatch can create questions at claim time.
• Mailing address. Where notices go. Cancellation and renewal notices are sent here, so an old address is a risk.
• Insured location or item. The home, building, vehicle or other property the policy covers. Check addresses, vehicle identification numbers and descriptions against your own records.
• Policy number and insurer. You will quote these on every claim. The company named is the one that owes you the promise, which may differ from the agent or brokerage you dealt with.

When

• Policy period. The start and end dates. Coverage applies to losses that happen inside the period, and policies usually run from a stated hour on the first day. Check how the dates compare with any earlier policy so that no gap is left.
• Policy type. Some policies are written on an occurrence basis, others on a claims-made basis, and the difference matters for what triggers coverage. If your page says “claims-made”, read the definition in the form before relying on it.

What is covered, and how much

This is the heart of the page, usually a table of coverages, limits and deductibles.

• Coverages. Named parts of the policy, such as dwelling, personal property, liability, collision or general liability. Each is a separate promise with its own limit.
• Limits. The most the insurer will pay for that coverage. Some limits apply per occurrence, others per person, per year or in total. The wording on the page tells you which, and the form defines the terms.
• Deductibles or retentions. The amount you carry before the insurer pays. Some are flat amounts and some are percentages. Percentage deductibles are common on certain kinds of loss in some places, so read yours closely.
• Sublimits. Smaller caps within a coverage for particular items or situations. They sometimes appear in the table and sometimes only in the forms.

Check that each coverage you thought you bought is on the page. Then check that the limits make sense against what you would need to repair or replace, which is a question for you and your agent, not for this guide.

Valuation and conditions

Some pages state how a loss will be valued. The usual choices are replacement cost, meaning the cost to replace the item with a new one, and actual cash value, which takes depreciation into account. The terms behind each are in the forms and differ between policies. If the page shows a coinsurance percentage or a similar condition, find its definition, since it can reduce a payment when the amount insured falls short of what the policy requires.

Forms and endorsements

Near the bottom you will find a list of numbers and titles. These are the forms and endorsements that make up your policy. The base forms hold the general terms. Endorsements change them, adding or removing coverage, and an endorsement generally overrides the base form where they conflict.

Make a habit of doing three things with this list:

1. Confirm that you have a copy of every form listed.
2. Read the endorsements first, since they alter the standard wording.
3. Look for exclusions and conditions in the base forms, and compare them with what you expect to be covered.

Other parties

• Mortgagee, lender or loss payee. Companies with a financial interest in the property. Claim payments may name them, and cancelling the policy may trigger notice to them.
• Additional insured. Someone else the policy protects for stated purposes. Commercial contracts often ask for this, and the details sit in the endorsement.

Premium and payments

The page shows what you are charged and may break it into parts, with taxes, fees or surcharges listed. Premiums are set by the insurer under rules that differ by state, and they change at renewal. Use the figure to check against your quote, and ask your agent if a charge is not explained.

Check it, then file it

When the policy arrives, go through the page with your quote beside it. Look for differences in names, addresses, dates, coverages, limits and deductibles, and ask about each one in writing. Store the policy where you can find it quickly, and keep a copy off the premises in case of a loss.

At renewal, compare the new page with the old one using the renewal review checklist. Unfamiliar words are defined in the insurance terms glossary. For help with the specific rules in your state, contact your state insurance department, which you can find through the National Association of Insurance Commissioners directory.