ecoming familiar with an insurance policy can be a little overwhelming. Understanding the basic policy structure can assist you with reviewing and interpreting the coverage you have purchased.
A policy has a Declaration Page which states the specific term and coverage amounts of your policy. Pay special attention to the following:
- Insured names - Verify the names and make sure they are spelled correctly.
- Effective dates - Check the effective dates on the policy. Verify the dates are correctly stated for the intended term. For example: 9/1/08 to 9/1/09.
- Deductibles - Take note of the deductible amounts stated. These amounts are your responsibility in the event you have a claim.
- Mortgagee - Verify the correct mortgagee is listed. It’s important to notify your insurer if your mortgagee changes.
Along with the Declaration Page are the corresponding Policy Forms that determine the specific coverage, conditions and exclusions of the policy.
For example: an HO-3 Policy
- Coverage A is coverage for the dwelling.
- Coverage B is coverage for structures unattached to the dwelling.
- Coverage C is personal property coverage, otherwise known as contents coverage.
- Coverage D is coverage for additional living expenses. This coverage is for temporary housing in the event you were displaced by a covered loss.
- Coverage E is coverage for liability claims.
- Coverage F is coverage for medical expenses due to a liability claim.
- Limited Coverage states special coverage limits items. For example: A loss of jewelry or guns resulting from theft may have a specific coverage limit.
- Conditions of coverage explain the insured's responsibility in the event of a claim.
- Exclusions of coverage explain specific items and scenarios not covered by the policy.
- Special Provisions state additional limits, conditions and exclusions that may apply to a policy. Do not mistake this form for your total policy document.
Helpful Tip
The best way to inventory your home and belongings is to video or take pictures of the house, each room and high dollar items kept on the premise. Store the video or pictures at off-site location such as a safety deposit box. This information is extremely handy in the event of a loss.
