How to read your policy

What a policy is made of

Declarations page

The summary: who and what is insured, the dates, each coverage with its limit, your deductibles, the price, and a list of the endorsements that apply. Start here.

Insuring agreement

The promise: what the insurer agrees to pay for, in broad terms.

Definitions

What the words mean in this policy. Words in bold or quotes in the policy are defined here, and the policy's definition wins over everyday meaning.

Exclusions

What is not covered. Read these carefully: most surprises live here.

Conditions

Your duties and the rules, like reporting claims promptly, protecting property after a loss, and how disputes are settled.

Endorsements

Changes added to the standard policy. They override the main text, so a policy can be broader or narrower than the standard form.

The declarations page, line by line

Here is a made-up homeowners declarations page. Yours will look different, but it will contain the same kinds of lines.

1. Named insured. The people the policy covers. Relatives living with them are usually covered too. Anyone else, like a roommate, isn't unless added.
2. Policy period. Coverage applies to losses that happen between these dates. On real US forms dates are written month first: 06/01/2026 is June 1.
3. Policy form. The standard form it's based on. This tells you whether damage is covered by named or open perils. See the form comparison.
4. Coverage A, Dwelling. The most it pays to rebuild the house. Check that it's enough to rebuild at today's prices.
5. Coverage B, Other structures. Detached garage, fences and sheds. Here it's 10% of A, the usual default.
6. Coverage C, Personal property. Your belongings, and how they're valued. "Replacement cost" is better than "actual cash value".
7. Coverage D, Loss of use. Extra living costs if you have to move out during repairs.
8. Coverage E, Personal liability. The most it pays for claims against you from one incident.
9. Coverage F, Medical payments. Small medical bills for guests, whoever was at fault.
10. Deductible, all perils. What you pay on each claim before the insurer pays.
11. Deductible, wind/hail. A separate, larger deductible for wind and hail damage. Easy to miss, and common in storm-prone states.
12. Endorsements. Add-ons that change the policy: here, sewer backup cover and a listed piece of jewelry. Look each one up in the policy packet.
13. Mortgagee. Your lender. Claim payments for the house may be made out to you and the lender together.
14. Annual premium. The price for the year. Discounts, like for alarms or bundling with car insurance, are often listed here.

Answering "am I covered?" in five steps

1. Check the dates. Did the loss happen during the policy period?
2. Check the property or person. Is what was damaged, or who was hurt, insured under this policy?
3. Check the cause. Is the cause covered: listed in a named-perils policy, or not excluded in an open-perils one?
4. Check the exclusions and endorsements. Does an exclusion take it away, or an endorsement add it back?
5. Check the numbers. What are the limit, any sublimit, and the deductible for this kind of loss?