Client guide
How to read your insurance policy
The first page tells you most of it. Here is what each part means, and what to ask your agent.
Start with the first page
Every policy opens with a summary called the declarations page. It is the page to keep, the page your lender asks for, and the page that answers most questions without reading anything else. Look for:
- Your policy number and the dates the policy runs
- Who is insured, and the home or the car it covers
- Each coverage, with the most it pays (the limit)
- Your deductibles: the part of a loss you pay yourself
- What you pay for the term, and how it is billed
- Your agent's name and number
- For a home with a mortgage, your lender's name
- Endorsements: any changes added to the standard policy
The six parts of a policy
Home, renters and auto policies are all built the same way. The names change little between companies.
The summary (the declarations page)
The first page or two. Your policy number, the dates the policy runs, who is insured, the home or the car, each coverage with its limit, your deductibles and what you pay. Most "what do I have" questions end here.
What is covered (the insuring agreement)
The company's promises: what it pays for and when. A policy with several coverages has one agreement per coverage.
Words with a legal meaning (the definitions)
Words printed in bold or quotes mean exactly what this section says, not what they mean in conversation. "Residence premises" and "occurrence" are two that matter.
What is not covered (the exclusions)
The list of losses the policy leaves out, even when the insuring agreement would seem to include them. When you have a question about a specific thing, read here first.
What each side must do (the conditions)
Your part: pay on time, report a loss promptly, protect the property from further damage, cooperate with the claim. The company's part: how and when it pays.
Changes to the standard policy (the endorsements)
Pages that add, remove or change coverage for your policy in particular. When an endorsement and the base policy disagree, the endorsement wins, so read every one your renewal carries.
The six coverages on a home policy
A homeowners policy lists them as Coverage A through F. A renters policy carries the last four. An auto policy lists its own set per vehicle (liability, collision, comprehensive, uninsured motorist, medical) and reads the same way.
- Dwelling
- The house itself, anything attached to it, and the built-in systems: plumbing, heating, electrical.
- Other structures
- A detached garage, a shed, a fence.
- Personal property
- Your belongings, inside the home and usually away from it too. Some kinds carry their own smaller limits.
- Loss of use
- Living costs if a covered loss means you cannot live at home while it is repaired.
- Liability
- If someone is hurt, or their property is damaged, and you are found responsible.
- Medical payments
- Smaller medical bills for a guest hurt at your home, paid without anyone having to sue.
Two words worth a second look
Deductible: the part of a covered loss you pay yourself before the policy pays. On a home policy it can be a dollar amount or a percentage of the dwelling limit, and a percentage looks smaller than it is.
Replacement cost or actual cash value: replacement cost pays to repair or replace at today's prices; actual cash value subtracts wear and age first. Your declarations page or an endorsement says which one applies to the house and to your belongings.
Before your renewal: what to check
The renewal arrives about a month ahead. Read it before it takes effect, so a change is explained before it surprises you.
- The renewal date, and what you pay now beside what you paid last term. If your rates went up, ask why before it renews, not after.
- The address, the names on the policy, and, for a home with a mortgage, your lender's name (it is listed so a claim check can also protect the loan). A refinance changes this line.
- Your dwelling limit beside what it would cost to rebuild today. Ask your agent for the number; it is not the purchase price and not the tax value.
- The deductible, in dollars. A deductible written as a percentage is a percentage of the dwelling limit, which is larger than it looks.
- What changed at home this year: a renovation, a finished basement, a new roof, solar panels, a pool or a trampoline, a home business, a new pet, new valuables. Each one can change what is covered or what you pay.
- Endorsements added or removed at renewal. A new page can carry a rule you have never seen, even when the company and the policy number look familiar.
- Discounts you may qualify for now: a new roof, an alarm or water sensor, more than one policy with the same company.
None of this is a recommendation about coverage. Your licensed agent answers what fits your home; this is how to read what you have.
Questions to ask your agent
Their number is on your declarations page. Jot these down and ask them together.
- What is my deductible in dollars, and does a storm or hail claim carry a different one?
- Is my dwelling limit enough to rebuild the house today?
- Does my policy pay replacement cost or actual cash value, for the house and for my belongings?
- What is not covered: flood, earthquake, water backing up from a drain, a slow leak, hidden damage? What would cover each?
- Which endorsements changed this year, and what does each one do?
- Is my lender listed correctly?
- How do I report a claim, and to whom?
How PolicyVera helps you read it
The same answers our Help center gives signed-in clients, in their words.
Can PolicyVera read my current policy so I don't retype it?
Yes. On your Insurance Profile, choose Upload my policy page and add the declarations page for each policy. We read the carrier, the dates, the premium and the coverages from it, and agents quote from those facts.
Am I covered? Where do I see what my policy says?
Open Policies. Each policy shows the carrier, the policy number, when it renews, what you pay and how that compares with last term, the policy period, and the coverage limits we read from your documents. View dec page opens the declarations page itself, the page that lists exactly what is covered. If a detail looks wrong, Review & confirm lets you correct it.
My renewal is coming. Will I be warned?
Yes. A policy on your Policies page shows how many days until it renews from 90 days out, you get a reminder in the app at 60, 30 and 7 days, and an email at 30 and 7 days, unless you turn renewal reminders off in Settings.
Something changed: a new roof, a dog, a teen driver, another home.
Tell your agent; they update your policy with the carrier. Message them from your quote request under My Quotes, or call the number on your declarations page. Adding a home or a household member to your Insurance Profile keeps future quotes accurate, and Shop sends a new request for any home you check.
My rate went up. What can I do?
Compare. Compare quotes on the policy card sends the same coverage to licensed local agents you choose, and the quotes line up beside your current policy so you can see what changed. Staying with your current agent is always an option, and PolicyVera never ranks or recommends a quote.
Common questions
What is a declarations page?
The first page or two of your policy. It lists your policy number, the dates the policy runs, who and what is insured, each coverage with its limit, your deductibles and what you pay. Most questions about what you have are answered there; the rest of the policy says how those promises work.
What is the difference between replacement cost and actual cash value?
Replacement cost pays what it takes to repair or replace with new materials at today's prices. Actual cash value subtracts wear and age first, so an older roof or sofa pays less. Your declarations page or an endorsement says which one applies to your home and to your belongings.
Why did my rates go up?
Common reasons: a rate change the company filed for your whole state, the cost to rebuild adjusted for inflation, a claim, the age of the roof, or a change in coverage or deductible. Your agent can tell you which applied to your policy.
Does a home policy cover floods or earthquakes?
A standard home policy leaves flood and earthquake out. Each needs its own policy or an added endorsement. Your exclusions section lists what else is left out, and your agent can say what would cover it.
How often should I read my policy?
At least once a year, when the renewal arrives, and after anything changes at home: a renovation, a finished basement, a new roof, a pool, a home business, a new pet or new valuables. Tell your agent about the change so the policy keeps up.
Keep your policy where you can read it
Upload the declarations page and PolicyVera reads the coverages for you. Free for you, always.
Questions about your own policy?
- Ask your agent: their number is on your declarations page. If your policy came through PolicyVera, Message reaches them from your quote request under My Quotes.
- Questions about PolicyVera: email Joshua at josh@policyvera.com , or submit a ticket from your dashboard.
This guide is general information about reading an insurance policy. It is not insurance advice or a recommendation about coverage. PolicyVera connects you with licensed local agents and displays the quotes they send; it does not sell, solicit, negotiate or bind insurance.