Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The declaration page is what personalizes your insurance policy. The provisions of the policy are in the accompanying pages and explain the coverages, limitations, and responsibilities that you and the insurer have. The declaration tailors these provisions to your situation by setting specific limits for the amount of loss that the company will cover. Do not overlook that there are also limits in the policy itself on certain types of properties and certain situations of personal liability. Read your policy carefully, they are designed to be understood.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
An insurance policy is by it's nature, a contract between you and your Insurance Company. In short, it stipulates the terms and conditions by which you as the insured and they as the insurer will operate and what is expected from each of you. The policy itself consists of two parts, the declaration sheet and the policy jacket. The Policy Jacket is a written detailed document ourlining the general terms and conditions of the policy. The Declaration is specific to you and your home. It names you as the insured and details both the mailing address and property location along with the amount of coverage that your particular policy provides. Your Mortgage company will also be named. Additionally, on it you will see the stated dwelling amount along with related personal property coverage and the deductible that you would be responsible for should there be a loss. You will also see the amount of Liability protection that the policy provides. In addition, you may see specific dollar limitations for certain categories of personal property. The declaration will identify whatever state rating territory you happen to be in as well as the fire protection class and finally, the annual premium that you pay will be listed for te current policy term.
Senior Commercial and Annuity Specialist, Freedom Brokers, Marion, Carbondale, Harrisburg IL
The declaration page is usually the first page in the package of paperwork you get from your insurance company. The declaration page is the paper that shows what your home is insured for, the limits of coverage on your home, and the limits of personal liability you may have. Though the limits of coverage often seem high, the insurance company has to pay for demolition and disposal of your original home, should you need to rebuild. That cost alone runs into the tens of thousands. The insurance company also has to cover the cost of estimates, and other expenses you only think about should a loss occur.
The declaration page will also show you the type of coverage you have on your home. Actual cash value (ACV) or replacement cost is the coverage you most often see.
Actual cash value may depreciate the roof and home value, and you may not get enough to rebuild. YOu and the insurance company say that you are agreeing to, in the case of a loss, get exactly what the loss may be worth. Like your 20 year old roof. Or your old worn out siding. Be careful about this one.
Replacement cost replaces the usual cost of rebuilding after a loss. Usually good enough to cover a single loss.
However, if you are in an area that has major disasters like a tornado, hurricane, wildfires, etc, you should look for a policy that offers guaranteed replacement. (The exact word "guaranteed", no other words ) Guaranteed replacement cost is offered by a few select insurance companies. This costs a bit more, but if there is a major disaster, it is the only coverage that will rebuild your home, no matter the costs, Often after a major disaster, costs of materials and labor (like a new roof after a tornado) skyrocket, and the limits of your policy (note"limits") will not be sufficient to rebuild your home the way it was.
If you can find it, get guaranteed replacement cost. If you do not understand what you have, go to your agent and ask until you understand it. Do not wait till after a loss to figure out what you have. Too late is no excuse
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The declaration page will also show you the type of coverage you have on your home. Actual cash value (ACV) or replacement cost is the coverage you most often see.
Actual cash value may depreciate the roof and home value, and you may not get enough to rebuild. YOu and the insurance company say that you are agreeing to, in the case of a loss, get exactly what the loss may be worth. Like your 20 year old roof. Or your old worn out siding. Be careful about this one.
Replacement cost replaces the usual cost of rebuilding after a loss. Usually good enough to cover a single loss.
However, if you are in an area that has major disasters like a tornado, hurricane, wildfires, etc, you should look for a policy that offers guaranteed replacement. (The exact word "guaranteed", no other words ) Guaranteed replacement cost is offered by a few select insurance companies. This costs a bit more, but if there is a major disaster, it is the only coverage that will rebuild your home, no matter the costs, Often after a major disaster, costs of materials and labor (like a new roof after a tornado) skyrocket, and the limits of your policy (note"limits") will not be sufficient to rebuild your home the way it was.
If you can find it, get guaranteed replacement cost. If you do not understand what you have, go to your agent and ask until you understand it. Do not wait till after a loss to figure out what you have. Too late is no excuse