Whenever you purchase any insurance policy, you will receive a multi-page document. These documents will usually include plenty of information about your insurance coverage. Many policy owners usually do not take the time to review each page, just because of the sheer number of items that need to be checked. Thankfully, you will be able to find the most important points of your insurance policy on the first page of your documents. This page is also known as the policy declarations page.
Homeowners insurance policies come in different types, coverage, and limitations. As a homeowner, it is crucial that you know the details of your insurance coverage. Your homeowners insurance declaration page also widely known as DEC page will include some of the most important information that you need.
What is a Policy Declarations Page?
Insurance Declaration page “DEC” is a page of your insurance document which is usually found on the front page of your policy. DEC sheets are not only issued to newly purchased insurance policies but also to those who renewed their term.
While you will usually find the DEC sheet on the first page of your documents, it can also span a couple of pages depending on the details of your insurance coverage.
Basic Information About Your Policy
Your declarations page will include all the basic information about your insurance policy.
- Name and address of the policyholder – Typically this should be the name of the homeowner. However, it can also include names of unmarried partners or people who are not blood relatives but are living inside the property. To be included in the coverage, any unmarried partners or people who are not relatives must be listed separately in the insurance policy.
- Agent Name – The name of the person who manages your policy. Typically, this person is from the insurance company.
- Insurance policy number – This is a unique number assigned to your policy.
- Insurance Company Information – This includes the name, address, and contact information of your insurer.
- Claim information – All the information required when making a claim including how your payouts will be paid.
Coverage, Premium, and Deductibles
- Coverage included – This includes the kind of policy form you took. For example, if you got an HO-3 Homeowners Insurance or an HO-6 Condo Insurance.
- Limits of each coverage.
- Deductibles for each coverage.
- Endorsement including limits and deductibles.
- Validity date including effective date and expiration date.
- Discounts and surcharges included.
- Policy rating information.
- Insurance price (Premium).
- Any additional name of the insured, such as any person who has insured interest in the property.
- Limits of Liability.
Your DEC sheet will also include all the information about your premium and deductibles. A premium is an amount that you need to pay throughout the policy period in order to keep your insurance active. The cost of your policy is determined by a number of things including the kind of coverage that you have, your age, credit scores, location, discounts applied, and claim history.
A deductible is an amount that you are required to pay out of your pocket when you are filing a claim before the insurance company will pay for the rest of the amount. Deductibles are typically listed as a fixed amount or a percentage of the value of your home insurance.
Importance of the Declaration Page
The Declaration Page is the most important part of your homeowner’s insurance policy because it shows all the most basic information that you will need in case you need to make a claim.
- Complete information of the main coverages and how the claim will be paid.
- The limits to each coverage.
- The cost of the coverage (premium cost).
After your declaration page, you will be able to find another important page of your policy. The policy wording page will include the definition of all the terms found on your DEC sheet, as well as, how it will apply in the insurance policy.
Differences Between Insurance Declaration Page and Insurance Binders
Plenty of homeowners are also confused between the differences between Insurance Binders and Declaration Page. A declaration page is part of your insurance policy and will be given once the policy is issued. Binder of Insurance is a temporary document that is meant to outline the insurance coverage. It will confirm that you are already insured while you are still waiting for your actual insurance policy. A binder will automatically become void once you have your actual policy.
Since the declaration page is a crucial part of your homeowners insurance you need to become familiar with its content. It will include all the important information that is crucial for making a claim in case of emergencies. Many homeowners find themselves in a predicament when they do not fully review their DEC sheet. Some common issues include misspelled names or incorrect addresses. In some cases, you may find mistakes on the type of coverage that you are paying for. So make sure to check your declarations page thoroughly once you receive it.
