How to Read A Home Insurance Policy Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Guide To Online Home Insurance Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: On This Page
katleho Seisa/Getty Images September 26, 2022 Mandy Sleight has been a licensed insurance agent since 2005. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar. Mandy writes about auto, homeowners, renters, life insurance, disability and supplemental insurance products. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Buying home insurance is an important part of your financial plan as a homeowner, and knowing how to read and understand your coverage is an integral step. Home insurance policies may seem complex, but don’t worry. Bankrate’s insurance editorial team includes four licensed insurance agents with a combined 47 years in the industry, so we can help you understand the details of your home insurance policy. Knowing how to read a home insurance policy might help you choose the appropriate coverage and evaluate your policy as your needs change. Compare rates and save on home insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form Insurance Home Key takeaways The main parts of home insurance policy documents are the declarations page and the policy jacket. Understanding replacement cost versus actual cash value is important to know how your homeowners insurance claim would be settled. Homeowners should also be aware that home insurance policies typically exclude certain types of property damage. How to read and understand your home insurance policy
The declarations page is the most important page when trying to understand your . It’s generally a single page or two at most. It will have information related to your policy, such as the insurance company’s name, your name, property address, coverage amounts, deductibles, endorsements and . The policy jacket, or policy form, is included with the declarations page, and it goes into even more detail with policy language, such as exclusions and conditions, as well as definitions of important terms. It is helpful to read it first so you understand the terms you will see on the declarations page. The parts of a homeowner insurance policy
The homeowners insurance policy is divided up by coverage types, which can vary by company and options selected by the policyholder and homeowner. The central element is dwelling coverage, and several of the other standard options are usually framed as a percentage of the dwelling coverage amount. Knowing what to look for on your policy’s declarations page can be vital if you are in the position of having to file a claim. If you have endorsements, or add-ons, such as flood insurance or coverage for electronics and valuables, you’ll need to understand the scope of this coverage as well. Here are common coverage types and what they cover. Coverage What it covers Provides financial protection to repair or rebuild your home’s structure if damaged or destroyed in a covered loss. Provides coverage for structures detached from the dwelling, like a fence, shed, barn or gazebo, if damaged or destroyed in a covered loss. Covers your personal belongings in the home and often extends some coverage for personal belongings stored in other locations, like a storage unit. If you and your household members are temporarily displaced from your home due to a covered loss, this coverage helps cover the costs. Protects you if you (or your pet — restrictions may apply) cause injuries to or damage someone else’s property and are financially responsible for covering the costs. Medical coverage Provides medical coverage if a guest is injured on your property, but you are not legally responsible for covering the costs of injuries. Replacement cost value versus actual cash value
For dwelling and personal property coverage, either applies. With , the home or personal property will be covered for the cost to replace what is damaged in a covered loss at the time of the claim, without depreciation. considers depreciation when determining your claim payout amount. Some insurance companies automatically include replacement cost for dwelling and personal property coverage, while other companies require it be added as an endorsement.
What is a home declarations page
A is a snapshot of the home insurance policy. It includes vital information about the insurance company and policy, including the named insured, property location and the selected coverage. Coverage limits, deductibles, endorsements, policy number and policy term, are also listed on the declarations page. If you have a mortgage, the company will be listed to show its insurable interest in the property. By reviewing your declaration page, you can see how you and your home are insured from covered losses. The elements included in the homeowners declarations page are: Policy number: The unique number identifying your policy. This number is used in all transactions, including filing and tracking a claim. Policyholder address: The location of the insured property, which may or may not be the same as the mailing address. Policy period: The dates listed are the start and end dates of the current policy term. Most home insurance policies automatically renew but contact your property insurer if you receive a . Named insured: The person or people with an insurable interest in the home and the holder of the insurance policy. Coverage types and limits: The specific coverage types included in the home insurance policy or selected by the named insured. Home insurance policy exclusions
A policy exclusion on your homeowners insurance indicates a loss or scenario that is specifically not covered. Policy exclusions are detailed in the policy jacket and can differ by company and . Most homeowners insurance policies exclude the following perils: Normal wear and tear Construction defects Foundation failure Pet and animal damage Earth movement Intentional loss Nuclear hazard Mechanical breakdown Mold and fungus Damage from a flood is also not covered under a home insurance policy. Some carriers may offer separately or you can purchase it directly from the National Flood Insurance Program (NFIP).
Frequently asked questions
What are home insurance endorsements
Endorsements allow you to customize your homeowners insurance for your specific needs. Add-on endorsements can vary by state and carrier, but could include coverage for , home daycare and .
How do I find the best home insurance company
The offers coverage, endorsements and limits you need to adequately protect your home, belongings and your personal liability. If you are not sure what the best homeowners insurance company is for you, consider getting several to compare options.
Do I need to change my home insurance policy
It depends on your situation. It’s a good idea to check your policy at least once a year to make sure that it still fits your needs. If you’ve made any major changes to your house — like getting a new roof, adding an extension or updating your utilities — you should let your insurance agent or company know so your policy coverage can be adjusted accordingly.
What are the perils my home insurance protects against
The most common causes of home damage (also called ), such as fire, wind, theft, the weight of snow and ice, vandalism, explosions and freezing pipes, are generally covered under a homeowners insurance policy. However, two major exclusions are flooding and earthquake coverage. If you live in an area prone to these types of disasters, you’ll need an endorsement or a separate policy to cover costs associated with these damages. SHARE: Mandy Sleight has been a licensed insurance agent since 2005. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar. Mandy writes about auto, homeowners, renters, life insurance, disability and supplemental insurance products. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work.