Understanding Your Policy

1. Declarations

Basically, your policy is broken down into four sections: The Declarations Page: Who, what, where coverage is provided and for how much. The separate coverage's are broken down and preceded by letters. They are as follows:

Cov. A. Your Building                                                                                         

Cov. B. Other Structures Other structures separated by clear space (garages sheds)

Cov. C. Contents Furniture, clothing, appliances. Some items are subject to special limits

Cov. D. Loss of Use Additional Expenses you incur because your home is not livable

Next to all of these coverage's are what is known as limits. This is how much coverage you have on these items. *Note - this does not mean this is all you get. Policy endorsements increase coverage.

Under this information you'll find a list of form numbers, sometimes with a description of the forms. These are called endorsements. These dramatically increase your coverage and limits. The main coverage forms on a Homeowner policy are HO-3, HO-2 or HO-1. These are the main coverage forms. HO-1 offers basic coverage HO-2 offers broad coverage or 4 more perils, and HO-3 is all risk coverage. Most policies are all risk policies or carry form HO-3. All risk coverage means everything is covered except for what is specifically excluded. (See exclusions below) Most people can locate only the Declarations page as Insurance Companies only send the declaration page with renewals. Try to locate your endorsements.

2. Insuring Agreements

Agreements between you and the insurance company regarding the contract. You agree to keep the property safe and free of hazards etc.

3. Conditions

Under what conditions the company agrees to insure your property and your duties after loss. *Note - the responsibility to prepare and present the claim is yours. Make yourself familiar with these items as they could be used to deny coverage or eliminate payment.

4. Exclusions

What is specifically excluded in your policy.*Note - Some policies are All Risk policies which means everything is covered except for what is specifically excluded. The exclusions in your policy are those exclusions. Some endorsements however exclude the exclusions.

These policies are the new and improved easy to read policy. It takes years of service to be able to read and understand the insurance contract.  Don't be afraid to give us a call with any coverage question you may have at any time during your claim.