Insurance policies are complicated legal documents, and many times policyholders do not even have a full copy to review during a claim. If you have experienced damage, and are going through the claim process, this short post will help you answer the following questions:
- How do I find out what coverages I have?
- What is my deductible?
- Is this my “current” policy?
- What are “endorsements” and do I have any on my policy?
If you ask for a copy of your policy from your agent, or download the policy documents online, you will get some form of the below page, which is called the Declarations Page:
Insurance policies are complicated legal documents, and many times policyholders do not even have a full copy to review during a claim. If you have experienced damage, and are going through the claim process, this short post will help you answer the following questions:
- How do I find out what coverages I have?
- What is my deductible?
- Is this my “current” policy?
- What are “endorsements” and do I have any on my policy?
These are the coverages your policy provides and their limits. The section to the left of the red box will have your name and address (they are redacted here). This State Farm policy provides Dwelling (house) coverage of $2,566,000, with a potential to increase by another $256,600 if necessary. It insures personal property (your stuff in your house) for $1,924,000. The “Loss of Use” sometimes called ALE (Additional Living Expense), is not limited but is the amount you actually incur or sustain if you are unable to live in your home because of a covered loss.
What is my deductible?
The deductible is in the red box. This policy is based on a percentage deductible. Typically, damages caused by wind, hail, or by a named storm like a Hurricane, are a percentage of your policy’s total limit. Here, all losses under this policy are subject to a deductible that is 1% of the total limit of $2,566,000, which is $25,660. Most percentage deductibles are either 1%, 3%, or 5%.
Is this my “current” policy?
Insurance only provides coverage for damages that occur during the period their policy insures you. Typically, that period is one year. If damages occur outside that policy’s period, there is no coverage under that policy, though there might be under a different policy.
The policy period for this policy is February 6, 2018, through February 6, 2019.
What are “endorsements” and do I have any on my policy?
Endorsements are changes or amendments to your policy. A policy consists of the main coverage form, which is usually 10-15 pages outlining what all is and is not covered. However, instead of changing that main form for individual customers, insurance companies will simply create amendments that they attach to the policy that amend, change, or sometimes completely remove portions of the main coverage form.
This policy contains several endorsements, which are contained in the red box. Any time you request a copy of your policy from your insurance company or your agent, make sure you also request copies of all applicable endorsements, because if you just have the main form, you do not have a complete copy of your policy.
Final Thoughts
Insurance policies are extremely complicated legal documents, written by teams of lawyers, consultants, and actuaries. They are repetitive, circular, and very difficult to understand. Fortunately, the lawyers at Green Klein Wood & Jones have decades of experience in reading, interpreting, and litigating insurance policy language. If you are unsure about your policy’s coverages, the applicability of an endorsement, or even whether you have a full copy of your policy, we are happy to assist you with a free policy review. We will gladly explain what your policy does and does not cover, and help you make sure that if you go through an insurance claim, you are armed with the knowledge you need to protect your rights and your property.
