Home insurance can be a complex topic, and it can be challenging to understand what exactly your policy covers. One of the most important documents in your homeowners' insurance policy is the declarations page. The declarations page summarizes your coverage and provides important information about your policy.
Understanding Your Homeowners’ Insurance
Here is a breakdown to help you better understand your home insurance and what each section of your declarations page contains:
- Coverage Period: This provides information to you when your coverage begins and ends, and is typically located at the very top of the declarations page.
- Homeowner Information: This section lists the insured’s name and address.
- Coverages, Property, and Liability Limits: This includes what may be covered under your policy and the corresponding coverage limits and premiums. The list typically lists coverages for dwelling, other structures, personal property, loss of use, and any other coverages.
- Deductible: This is the amount of money you must pay out of pocket before your homeowners insurance company starts covering the cost of a covered claim on your property. It is important to understand your deductible and ensure that you have enough funds set aside to cover it in the event of a claim.
- Policy Premium: This is the amount you pay for your homeowners’ insurance. Most carriers, like American Integrity, have payment plans that you can choose from, including monthly, annually, or six-month.
- Discounts: Your premium can be reduced by certain discounts if you meet certain conditions. For example, bundling your watercraft and homeowners policies with American Integrity Insurance can reduce your premium.
- Options and Endorsements: Additional coverages are available for additional premium. These may limit or extend your coverage in certain areas or circumstances.
Significant Aspects of Your Homeowners’ Insurance Policy
The following sections of your declarations page are particularly important. Here are overviews of each.
Section I Coverage A: Primary Dwelling
Coverage A, also known as dwelling coverage, is a part of your homeowners’ insurance policy that protects your home’s physical structure and attached structures (ex: your garage) from damage caused by covered perils. This coverage can offer protection on an actual cash value (ACV) or a replacement cost basis to rebuild or repair your home if it's damaged or destroyed by a covered event such as fire, windstorm, or vandalism. The amount of coverage you need for Coverage A is typically based on the cost to rebuild your home, not the market value of your property.
Section I Coverage B: Other Structures
Coverage B covers other physical structures on your property that are not attached to your home. Examples of other structures may include sheds, detached garages, swimming pools, and fences. It is important to note that the coverage limit for Coverage B is typically a percentage of the Coverage A limit, usually around 10%.
Section I Coverage C: Personal Property
Coverage C typically covers personal belongings from damage due to a covered loss or theft. This may include furniture, clothes, equipment, and more. This coverage is also subject to a limit, which is typically a percentage of the Coverage A limit. Consider creating an inventory of your belongings and their value to help determine the appropriate coverage limit.
Section I Coverage D: Loss of Use
The final item in the property coverage section is Coverage D, which provides coverage for additional living expenses if your home is uninhabitable due to a covered loss. This coverage may pay for expenses such as hotel stays and other expenses you incur while your home is being repaired or rebuilt. It is important to note that this coverage is subject to a limit and typically only covers expenses that are above your normal living expenses.
Section II: Liability Coverage
The second section of your declarations page offers liability coverage. This covers you if you are found legally responsible for injuries to other people on your property or damage to a neighbor’s property. This section typically includes two main parts: Bodily Injury Liability and Property Damage Liability.
Get Help with Your Home Insurance
Understanding your declarations page is essential to ensure that you have the appropriate coverage to protect your home and assets. If you have any questions or concerns about your policy, contact an American Integrity agent or a member of our friendly Client Services Team. We’re happy to review and explain your coverage and answer your questions.