How to Read Your Insurance Policy

All insurance policies follow a standard structure defined by state insurance law:

• Declarations Page: Your name, address, coverage limits, deductible, coverage period, and premium.
• Coverage Section: What is covered under your policy (e.g., dwelling, personal property, liability).
• Exclusions: What is NOT covered (e.g., floods, earthquakes, wear and tear).
• Conditions: Your obligations and requirements (e.g., report claims promptly, maintain the property).
• Endorsements/Riders: Additional coverages or modifications to the standard policy.

• "Sudden and accidental": Loss must occur unexpectedly, not gradually or due to normal wear.
• "Direct loss": Damage caused directly by the covered peril, not indirect consequences.
• "Covered peril": A specific event (fire, theft, wind) that triggers coverage.
• "Subject to": Indicates a limit, deductible, or condition applies to the coverage.

• Broad exclusions that seem to eliminate most common claims
• Steep deductibles or percentage-based deductibles on high-value items
• Depreciation schedules that seem excessive (>10% annually)
• Language requiring maintenance or upkeep as condition of coverage
• Limits on specific items (water damage, outdoor coverage, etc.)

1. Request a clean copy of your full policy from your insurer.
2. Read your declarations page first to understand your coverage limits and deductibles.
3. Locate your coverage section and read what is specifically covered.
4. Read all exclusions and note which perils are eliminated.
5. Check for endorsements that may modify coverage or add exclusions.
6. Make notes on key terms and limits for reference when filing a claim.