Although an insurance declaration page represents a small segment of an insurance policy, it is perhaps the most integral part of the contract. Unfortunately, many people do not know the purpose of an insurance declaration page.
An insurance declaration page is a summary that contains critical information on the document and sets out the terms of the agreement between the insurers and insured persons.
Thus, no matter how large an insurance policy is, it is quicker to understand it and identify discrepancies in an insurance policy by perusing through the dec page.
What Does the Declaration Page Contain?
People who have never encountered an insurance declaration page may think it is a detailed memorandum and wonder what it contains. The page includes standard information on the insured party and the insurance policy’s terms.
However, the information provided may vary according to the type of insurance, giving a variation of what is an insurance declaration page across different fields.
Below are some common types of insurance declaration pages
Homeowners Insurance Declaration Page
Most homeowners sign insurance agreements that ensure their property’s financial protection in case catastrophe strikes. The policies have a dec page that spells out when the insurance becomes effective and lists basic information such as:
- The name of the parties to the insurance policy.
- The address of the insured property.
- Names of people affected by the insurance policy, such as the mortgage lender.
- Duration and frequency of payments.
- Terms of the policy and discounts you may receive from the insurance company.
Auto Insurance Declaration Page
The auto insurance dec page outlines your car’s coverage terms and contains information such as:
- The insured vehicle’s details, including the model, identification number, and date of manufacture.
- A list of drivers who frequently operate the vehicle.
- The amount and frequency of payments to the insurance company.
- The type of insurance coverage.
- Policy terms and discounts the car owner receives when covered.
Renters Insurance Declaration Page
The dec page of a renter’s insurance policy also incorporates terms of agreement and essential information pertaining to the insurance policy, including:
- The property’s address.
- The occupying tenants’ names and identification.
- The payable amount in case of damage to property or personal liability.
- The length of the insurance policy.
The given information shows that insurance declaration pages differ according to the type of insurance. However, they all contain basic insurance policy terms and information on the parties.
Why Is an Insurance Declaration Page Important?
The primary importance of the dec page is that it sets out the specifics and terms of the insurance policy; thus, it serves as proof of the agreement. Therefore, the perfect place to store it is in a safe place inaccessible to unauthorized persons.
Similarly, there are some instances an insurance declaration page is required. For example, when on a mortgage, the mortgage company needs a home insurance dec page once a year as proof of home ownership.