When you get your insurance policy documents, or when you’re shopping around for insurance, it’s important to understand what your policy covers, what you’re responsible for, and other details.
If you already purchased your home and are looking at your documents once they’ve arrived (congrats!), you’ll first notice that there are a lot of papers. All of them are important information and disclosures, but the Declarations Page is the part, usually at the front, that explains your policy specifically. Review the information to make sure it’s correct, including your mortgage company (if your mortgage gets sold, you’ll need to update this).
There will be a section on Coverages and Property, specifically stating the liability limits, which is how much the insurance will pay at most for a claim in that category, and what items are covered. Understanding what is and is not covered by your insurance is essential should you ever need to file a claim.
There are various kinds of coverage, including Other Structures (like a stand-alone shed, garage, or fence that are not part of the house) and Personal Property (clothing, furniture, and other personal belongings). You may also benefit from a Home Insurance Rider if you have certain high-dollar belongings, like jewelry or collectables. There’s also a Loss of Use section, depending on your policy, which would provide coverage for additional expenses you may have if your home is unlivable because of a covered loss.
The Policy Premium section is the amount you’re paying for your coverage. While it’s an important factor in determining what insurance you might purchase while you’re shopping around, it should be considered against what that premium gives you in protection.
Additional Home Insurance Policy Coverage Resources
For useful tools for maintaining your home insurance records for any future claims, visit this resource:
