When you buy homeowners insurance, you receive a bunch of papers. One of the most important ones is your declarations page. This page is usually found at the very beginning of your insurance packet. It may look confusing at first, but it actually gives a clear summary of your coverage—if you know how to read it.

What Is a Declarations Page?

Your declarations page is like the front cover of your insurance policy. It shows who the policy is for, what is covered, how much is covered, and when the coverage starts and ends. It lists your name, your address, the amount of each type of coverage, your deductibles, and any special extras you might have added to your plan.

Think of it as a summary sheet. If you want to check your policy without reading through dozens of pages, this is the page to look at first.

What the Numbers and Terms Really Mean: A Simplified Breakdown

Let us look at the different types of coverage you will usually see on your declarations page. Each one covers a different part of your home and what could happen to it.

Coverage A – Dwelling

This is the amount your insurance will pay to rebuild your house if it is damaged by a covered event like a fire or storm. It only covers the building, not the land. If this number says $300,000, that means your home is insured for that amount.

Coverage B – Other Structures

This covers things like fences, sheds, or a detached garage. It is usually 10% of the dwelling amount. So, if your home is insured for $300,000, this section might cover $30,000 worth of other structures.

Coverage C – Personal Property

This is what pays for the items inside your home—like your clothes, furniture, and electronics—if they are damaged or stolen. This amount is often 50% to 70% of the dwelling coverage.

Coverage D – Loss of Use

If your home is badly damaged and you cannot live in it while repairs are made, this coverage pays for extra living costs. That might mean hotel stays, meals, or temporary housing.

Coverage E – Personal Liability

If someone gets hurt on your property and you are legally responsible, this section pays for legal fees or damages. It also applies if you accidentally cause damage to someone else’s property.

Coverage F – Medical Payments to Others

This covers small medical costs for guests who get injured on your property. It does not require proving who was at fault and is often used for simple accidents.

Deductibles Breakdown (Made Simple)

A deductible is the amount of money you pay out of your own pocket before your insurance covers the rest. There are usually two types:

Flat Deductible

This is a fixed dollar amount like $1,000 or $2,500. It applies to most claims like fire, theft, or water damage.

Percentage-Based Deductible

This type usually applies to special events like hurricanes or windstorms. Instead of a flat amount, it is a percentage of your dwelling coverage—not a percentage of the damage. This is where many homeowners get confused.

The Most Misunderstood Deductible – The Hurricane Deductible

One of the most confusing parts of a homeowners policy is the hurricane deductible. It is often listed as a percentage—such as 2%—but that does not mean 2% of the loss. It means 2% of your Coverage A (Dwelling).

Let us say your home is insured for $300,000 and your hurricane deductible is 2%. That means you must pay $6,000 out of pocket before your insurance starts paying for storm damage. Even if your damage is only $10,000, you still pay the full $6,000 first.

This surprises many homeowners who think the 2% is based on the actual damage. It is not. It is always based on the total insured value of your home.

Other Things to Look For

There are a few more details you can find on your declarations page that are worth checking:

• Sub-limits – Some things like jewelry, electronics, and cash may have limits that are lower than your total personal property coverage.
  
• Endorsements or Add-ons – These are optional coverages you might have chosen, like coverage for water backup or scheduled personal items.
  
• Discounts – You might see savings listed if you have a home alarm, newer roof, or if you bundle your home and auto insurance.

Why This Page Is Worth Reading

Even though it is just one or two pages, your declarations page tells you a lot about your protection. It is where you will find out how much your home is covered for, what you would have to pay if something happens, and if you have any extra coverage or discounts.

Taking a few minutes to go over it can help prevent surprises later. You can also use it to ask smart questions the next time you talk to your insurance agent.