What Is a Homeowners Insurance Declaration Page?
When you buy homeowners insurance, the company you buy it from should provide you with a homeowners insurance declaration page. This document summarizes what’s included in your policy and lists the events or damages that are covered in the policy and those that aren’t covered. It also explains the process for filing a claim.
Also known as a “dec page,” this form specifies your insurance rates, premiums, deductibles, and policy limits.
Key Takeaways
- The homeowners insurance declaration page should spell out which events are covered and which aren’t, along with the various costs associated with your policy.
- If your home is damaged, you can refer to the homeowners insurance declaration to determine whether you’re eligible to file a claim.
- Your mortgage lender will ask for a copy of this document before your mortgage is finalized and when you make changes to the policy.
Understanding a Homeowners Insurance Declaration Page
A homeowners insurance declaration page is essentially a summary of your homeowners insurance coverage. If you need to get information about your policy quickly, you can refer to this document instead of wading through the much more detailed policy.
Insurance companies provide homeowners with a copy of the declaration page when their clients are buying a home and purchasing coverage or when they make changes to an existing policy.
The document includes basic personal details, such as your name, birthdate, address, and phone number.It breaks down the most important parts of your policy’s coverage, including:
- Effective date
- Type of dwelling
- Coverage limits
- Deductibles
- Covered and non-covered events
- Annual premiums
- Discounts
- Responsibilities of the homeowner, such as the presence of fire extinguishers or deadbolts
All of these facts are drawn from your policy, but they’re listed in an easy-to-read format, usually on a single page.
Depending on your insurance company, this document may be mailed to you, emailed to you, or made available for online download after you purchase the policy.
A homeowners insurance declaration page may not include all the details of your policy. For example, add-on coverage for events not covered by the main policy may not be included here.
How to Read a Homeowners Insurance Declaration Page
Getting familiar with this document is important, especially if you need to file a claim at some point. The insurance declaration page is a helpful reference if you have questions about your policy.
First, check to make sure that all of your personal information is correct. Make sure that your page has the right name and property address.
Next, look at the coverage types, so that you understand which perils are covered and not covered. For example, a typical homeowners insurance policy includes coverage for fire or theft, but flood insurance or coverage for other types of water damage may need to be purchased separately.
Once you’ve reviewed what’s covered, look at your coverage numbers. The insurance declaration page may break down coverage amounts for:
- Primary dwelling
- Separate structures
- Personal property
- Loss of use
- Personal liability
- Medical payments to others
Your form should also list your deductibles for covered events as well as your premium costs. Your premiums may be reduced if you qualify for any discounts, such as a bundling discount if you’re combining homeowners and car insurance or a loyalty discount if you’ve been using the same insurance company for several years.
A dec page can be a single sheet with the most relevant information or several pages if it includes definitions or explanations of the summarized information included. For example, your insurance company might define some of the key terms or coverage amounts in more detail.
If you don’t see any discounts listed on your homeowners insurance declaration page, it’s worth a phone call to your insurer to see if you qualify for any.
Homeowners Insurance Declaration Page and Mortgage Lenders
When you apply for a mortgage to buy a home, the many documents you need to give your lender may include your homeowners insurance declaration page. Lenders want to protect themselves from the possible destruction of your property during the time you hold a mortgage. Often, this is called the mortgagee clause.
Keep in mind that this page is different from an insurance binder, which is essentially a temporary contract that shows you’ve attempted to purchase homeowners insurance as part of the home-buying process. This binder is not a substitute for actual coverage, which is what a homeowners insurance declaration page proves.
If you aren't asked to provide a dec page when applying for a mortgage, your lender may ask for one after the purchase closes. Most lenders require mortgage holders to send in an updated copy of the dec page annually as proof that the home is still insured. If you should fail to provide this proof of coverage, your lender might purchase coverage on your behalf and charge it as part of your escrow on your monthly payments.
When filing a claim, keep accurate records of conversations you have with your insurance company as well as of any expenses you pay out of pocket.
Homeowners Insurance Declaration Page and Claim Filing
If your home is damaged, your homeowners insurance declaration page may be able to tell you if the event is covered. If the summary is unclear, you’ll need to reach out to your insurance company. This will be necessary to file a claim anyway.
As you navigate the claims-filing process, be sure to keep a copy of your dec page on hand. This way you can verify what your deductibles are supposed to be and what your coverage limits are.
What Does Homeowners Insurance Cover?
A standard homeowners insurance policy reimburses you for losses or damage to your property caused by an adverse event like a burglary or a fire.
Damage from certain natural disasters, such as hurricanes or earthquakes, is not usually covered by a standard policy but can be added on by the homeowner.
Many homeowners who have a mortgage pay their homeowners insurance as an add-on to their mortgage payments. The bank then pays the insurance.
How Much Does Homeowners Insurance Cost?
Average homeowners insurance costs vary widely by state, from a low of $735 a year in Oregon to a high of $2,165 in Florida.
Many other factors are considered in the rate you are offered, such as the age and condition of your home and its distance from the nearest fire department.
What Are the 3 Levels of Homeowners Insurance?
The three levels of homeowners insurance are the degree of coverage provided by the policy:
- Actual cash value reimburses for losses at the property's original cost minus depreciation in its value over time.
- Replacement cost reimburses for losses in the amount that replacing it will cost.
- Extended replacement cost or value is the most comprehensive coverage, offering reimbursem*nt that pays for replacement even beyond the policy's ceiling.
The Bottom Line
The homeowners insurance declaration page can serve as a quick reference guide to your coverage for property losses and how to submit a claim for reimbursem*nt. It's also an essential document for obtaining a mortgage.
Before you submit a claim to your insurer, you'll still probably need to contact a company representative in order to clarify the coverage and the process.
