Homeowners Insurance Declaration Page: What It Is and How to Read It

What Is a Homeowners Insurance Declaration Page?

When you buy homeowners insurance, the company you buy it from should provide you with a homeowners insurance declaration page. The document summarizes what’s included in your policy and lists the events or damages covered or not covered in the policy. It also explains the process for filing a claim.

Also known as a “dec page,” this form specifies your insurance rates, premiums, deductibles, and policy limits.

Understanding a Homeowners Insurance Declaration Page

A homeowners insurance declaration page essentially summarizes your homeowners insurance coverage. If you need to get information about your policy quickly, you can refer to this document instead of wading through the much more detailed policy. 

Insurance companies provide homeowners with a copy of the declaration page when their clients are buying a home and purchasing coverage or when they make changes to an existing policy.

The document includes basic personal details, such as your name, birthdate, address, and phone number. It breaks down the most important parts of your policy, including:

• Effective date
• Type of dwelling
• Coverage limits
• Deductibles
• Covered and non-covered events
• Annual premiums
• Discounts
• Responsibilities of the homeowner, such as the presence of fire extinguishers or deadbolts

All of these facts are drawn from your policy, but they’re listed in an easy-to-read format, usually on a single page.

Depending on your insurance company, this document may be mailed, emailed, or made available for online download after you purchase the policy. 

How to Read a Homeowners Insurance Declaration Page 

Getting familiar with this document is important, especially if you need to file a claim at some point. The insurance declaration page is a helpful reference if you have questions about your policy. 

First, ensure that all of your personal information is correct and that your page has the right name and property address.

Next, review the coverage types for which perils are covered and not covered. For example, a typical homeowners insurance policy includes coverage for fire or theft, but flood insurance or coverage for other types of water damage may need to be purchased separately. 

Once you’ve reviewed what’s covered, look at your coverage numbers. The insurance declaration page may break down coverage amounts for:

• Primary dwelling
• Separate structures
• Personal property 
• Loss of use
• Personal liability
• Medical payments to others

Your form should also list your deductibles for covered events and your premium costs. Your premiums may be reduced if you qualify for any discounts, such as a bundling discount when combining homeowners and car insurance or a loyalty discount if you’ve been using the same insurance company for several years.

A dec page can be a single sheet with the most relevant information or several pages if it includes definitions or explanations of the summarized information included. For example, your insurance company might define some of the key terms or coverage amounts in more detail.

Homeowners Insurance Declaration Page and Mortgage Lenders

When you apply for a mortgage to buy a home, the many documents you need to give your mortgage lender may include your homeowners insurance declaration page. Lenders want to protect themselves from the possible destruction of your property while you hold a mortgage. Often, this is called the mortgagee clause. 

Keep in mind that this page is different from an insurance binder, which is essentially a temporary contract showing you’ve attempted to purchase homeowners insurance as part of the home-buying process. This binder is not a substitute for actual coverage, which is what a homeowners insurance declaration page proves.

If you aren't asked to provide a dec page when applying for a mortgage, your lender may ask for one after the purchase closes. Most lenders require mortgage holders to send in an updated copy of the dec page annually as proof that the home is still insured.

If you fail to provide this proof of coverage, your lender might purchase coverage on your behalf—called forced-placed insurance. The lender will charge you as part of your escrow on the monthly payments. Forced-placed insurance is typically more expensive than had you bought the policy on your own.

Homeowners Insurance Declaration Page and Claim Filing

If your home is damaged, your homeowners insurance declaration page may be able to tell you if the event is covered. If the summary is unclear, you’ll need to contact your insurance company, which will be necessary to file a claim anyway.

As you navigate the claims-filing process, be sure to keep a copy of your dec page on hand. This way, you can verify what your deductibles are supposed to be and what your coverage limits are.

Frequently Asked Questions (FAQs)

The Bottom Line

The homeowners insurance declaration page can serve as a quick reference guide to your coverage for property losses and how to submit a claim for reimbursement. It's also an essential document for obtaining a mortgage.

Before you submit a claim to your insurer, you'll still probably need to contact a company representative to clarify the coverage and the process.