How to read your homeowners insurance policy, page by page

Start with the declarations page

The declarations page, often called the “dec page,” is the summary sheet at the front of the policy. It is personalized to you and your property, and it is the fastest way to answer the basic questions.

If you cannot find your declarations page or the full policy, ask your agent or insurer for a complete copy for the policy period of the loss, including all endorsements.

Coverages A through D, in plain language

Many homeowners policies organize property coverage into lettered sections. The labels below are common, but check your own form, because some policies use different names or order.

Coverage A: Dwelling

The house itself and structures attached to it, such as an attached garage. This is usually the largest limit on the policy, and some deductibles are calculated from it.

Coverage B: Other structures

Structures on the property that are not attached to the house, such as fences, detached garages, sheds and some screen enclosures. The limit is often a percentage of Coverage A.

Coverage C: Personal property

Your belongings: furniture, clothing, electronics and similar contents. Some categories, such as jewelry or collectibles, may have special lower limits unless you added coverage.

Coverage D: Loss of use (additional living expense)

If a covered loss makes your home unlivable, this coverage may pay reasonable additional costs of living elsewhere, such as a hotel or rental, above your normal expenses. Keep every receipt and note the dates you moved out and back.

Deductibles, including the hurricane deductible

The deductible is the part of a covered loss you pay before the policy pays. Many policies have more than one.

• All other perils deductible. A fixed dollar amount that applies to most losses.
• Hurricane or named storm deductible. Common in coastal states. It is often a percentage of the Coverage A limit rather than a flat amount, so it can be much larger than the all-other-perils deductible.
• Wind or hail deductible. Some policies use a separate deductible for wind or hail losses.

Read the hurricane deductible wording closely. It defines which storms trigger it and whether it applies once per season or per event. Those details can change the payment math significantly.

Exclusions and endorsements: where coverage is shaped

The insuring agreement grants coverage. Exclusions take some of it away. Endorsements add, remove or change coverage for your specific policy. You need all three to understand what is covered.

Common exclusions

• Flood and surface water, which usually requires a separate flood policy
• Wear and tear, deterioration and maintenance issues
• Long-term, repeated seepage or leakage
• Earth movement
• Mold, fungus or rot, often with an exception or a limited amount of coverage

Exclusions often contain exceptions. For example, a water exclusion may not apply to damage from a sudden, accidental discharge from a plumbing system. Always read the full paragraph, not just the heading.

Endorsements

Endorsements are listed on the declarations page and attached to the policy. Some broaden coverage, such as ordinance or law coverage for code-required upgrades. Others narrow it, such as a roof payment schedule or a limit on water damage. An endorsement can change the answer to a coverage question completely.

Replacement cost versus actual cash value

The loss settlement section explains how the insurer values damaged property.

• Replacement cost value (RCV) is generally the cost to repair or replace with materials of like kind and quality, without deducting for age.
• Actual cash value (ACV) is generally replacement cost minus depreciation for age and condition.

Many replacement cost policies pay ACV first and release the held-back depreciation after repairs are completed, within a time limit. Some policies, or parts of them such as roof coverage, settle on ACV only. Knowing which applies tells you what to document and when.

Duties after loss and the appraisal clause

The conditions section lists what the policy expects from you after a loss. These duties matter, because failing to meet them can create problems for the claim.

1. 1Give prompt notice of the loss, as the policy requires. In Florida, section 627.70132 of the Florida Statutes bars a new or reopened claim unless notice is given within one year after the date of loss, and a supplemental claim within 18 months.
2. 2Protect the property from further damage and keep receipts for reasonable emergency repairs.
3. 3Prepare an inventory of damaged personal property when requested.
4. 4Show the damaged property and provide records and documents the insurer reasonably requests.
5. 5Submit a signed, sworn proof of loss if the policy requires one and the insurer asks for it.
6. 6Cooperate with the investigation, which may include a recorded statement or an examination under oath.

Several of these duties, such as recorded statements, examinations under oath and sworn proofs of loss, are moments where preparation matters. Talk to a licensed public adjuster before you complete them. We can help you meet every duty on time while making sure the damage is described fully and accurately.

The appraisal clause

Many policies include an appraisal clause for disputes about the amount of loss, not about whether something is covered. Typically each side chooses an appraiser, and the appraisers select an umpire to resolve differences. The exact steps, costs and deadlines are written in your policy, so read that clause before invoking it. Our appraisals page explains how it works in practice.

Frequently asked questions