If you read only one page of your insurance policy, make it the declarations page. It is the summary that tells you who is covered, for how much, and for how long.
What the declarations page is
The declarations page, often called the dec page, is the cover summary of your policy. It is generated specifically for you and lists the named insured, the mailing address, the policy number, the policy period, the covered property or vehicles, the coverage limits, the deductibles and the premium. Everything else in the policy booklet is the standardized contract language; the declarations page is the part that is unique to your situation.
Because it is produced for you individually, the declarations page is also the page most likely to contain a clerical error. A misspelled name, an old address, an incorrect vehicle identification number or a lienholder listed in error can all create administrative problems later. Reviewing the dec page carefully each time you receive a new one is one of the simplest and most valuable habits a policyholder can develop.
Reading the coverage limits
Coverage limits are usually displayed as numbers next to each type of coverage. On an auto policy you may see limits expressed as three figures, such as bodily injury per person, bodily injury per accident, and property damage. On a homeowners policy you will see separate limits for the dwelling, other structures, personal property and liability. Understanding which number applies to which situation is essential, because the limit is the maximum the policy will pay for a covered loss.
Deductibles appear alongside the limits and represent the amount you are responsible for before coverage applies. A higher deductible generally lowers your premium but increases your out-of-pocket cost at the time of a claim. Knowing your deductibles in advance prevents an unpleasant surprise when a claim is filed.
Keeping your dec page current
Each renewal generates a new declarations page, and the changes from one term to the next are not always obvious. Comparing the new dec page to the previous one is the fastest way to spot a premium increase, a changed deductible or a coverage that has been added or removed. We recommend keeping the last two declarations pages together so the comparison is easy to make.
If anything on the page looks wrong or unfamiliar, it is worth a call to your agent. Correcting an administrative error on the declarations page is straightforward when caught early and far more difficult when discovered at the time of a claim. An organized policyholder keeps the dec page accessible and reviews it the moment it arrives.