Hey everyone, it’s Tom Saue - one of the agents here at Citizens Alliance Agency (CAA). In today’s blog, I’m going to go over what’s included on a homeowner's insurance
declaration page (dec page).
Here's what you'll typically find on a dec page:
1. Policy Information: This includes the policy number, the effective date, and the expiration date (when it starts and when it ends).
2. Named Insured: The person(s) or entity (such as a trust) that’s covered by the policy. Typically, the policy is written in the homeowner's name.
3. Insured Property: Information about the property being insured, which includes the property address, type of construction, and other pertinent information about the property.
4. Coverage Types:
Dwelling Coverage (Coverage A): The amount of insurance on the home. This figure is based on the cost to replace the home if it were destroyed…not the fair market value of the property.
Other Structures (Coverage B): Insurance for other structures on the property - like a detached garage or shed. Usually, it's 10% of Coverage A and can be increased by endorsement if needed.
Personal Property (Coverage C): Covers personal belongings inside the home. Again, this is usually a percentage of Coverage A.
Loss of Use (Coverage D): Provides living expenses if you can’t live in your home due to a covered loss.
Personal Liability (Coverage E): Covers legal expenses if someone is injured on your property or if you cause damage to someone else's property.
Medical Payments to Others (Coverage F): Pays for medical expenses of guests injured on your property.
5. Coverage Limits: The maximum amount the insurance company will pay for each type of coverage. This is typically listed next to each type of coverage mentioned above.
6. Deductibles: Your responsibility (out-of-pocket expense) before the insurance company starts paying for a covered loss. Can be listed as a single deductible for all losses (i.e., $1000 deductible) or a split deductible where the deductible amount varies depending on the type of claim (i.e., $1000 fire deductible / $2500 wind and hail deductible).
7. Premiums: The cost of the policy.
8. Endorsements and Riders: Additional coverages or modifications to the standard policy. These might include personal property replacement cost, water backup of sewers or drains coverage, equipment breakdown, service line coverage, scheduling specific jewelry or guns.
9. Discounts: Any discounts applied to your policy. Some examples would be home/auto discount, protective devices discount, claims-free discount, paid-in-full discount.
10. Lienholder Information: If you have a mortgage on the home, the lender's name and address will be listed here and should also include the loan number.
Understanding these sections can help you know exactly what your homeowner's insurance policy covers and how much you're paying for it.
If you have any specific questions or need more detailed information, feel free to ask one of the agents at CAA.
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