By Zak Larsen
As an insurance agent, I answer a lot of calls throughout the day. One of the more common calls I get is asking what a declarations page is and why a bank or mortgage company is asking for it before approving a loan. So what is a declarations or “dec” page?
For a simple explanation, I’m going to bring us back to elementary school when we learned the 5 W’s. Who, What, When, Where, and Why. Your declarations page is very similar to this concept except for the last W, Why is replaced with How Much.
1. Who & Where
Your dec page starts by listing the name and address of the person insured. This is referred to as the “Named Insured” or the person who actually purchased the policy.
What is being insured by this policy? This section of your declarations page describes what is actually being insured. It will show the year, make, and model of any vehicles, the address of any farm or home, or the name and location of a business that is insured.
Your declarations page describes the effective dates of the policy. Generally this is in either a 6 or 12 month format, depending on the type of insurance and the company which writes the policy.
4. How Much
This portion of the declarations explains the limits of each coverage and lists any deductible for that coverage. Depending on the type of policy, some of the specific limits may be found in the policy itself but the basic coverages and any major endorsements will be found on this page.
So why do you receive the declarations page every year and why do banks require a copy? What a lot of people don’t know is that most policies are 30+ pages of definitions, exclusions, special situations and circumstances that don’t change year to year so you only need a full copy when the policy is first purchased. The full copy of the policy is always available to you and we are happy to send it if you’re having trouble sleeping and need something to help you nod off… 😉
Banks and other mortgage companies will generally require an updated copy of your dec page each year to make sure that their investment in your home or auto is properly covered and they won’t lose out on what is owed to them in the case of a loss.
That’s the declarations page, short and sweet…everything you need to know about your coverages in one place.
Have questions about your policy or want to discuss any changes that you want to make? Give us a call at 913-338-1100. We at MAX Insurance Agency in Overland Park are always excited to talk to you about your home or auto insurance dec pages. And we will always answer with a smile!
Zak started at MAX in October of 2017 and has 3 years of insurance experience, specifically in auto insurance claims. A big sports fan, he spends time cheering on the Wild, Twins, and Vikings. Most of all he enjoys spending time with his family, working with his hands, and doing just about anything outdoors (especially fishing and camping). Zak also volunteers with a local high school youth group and helps to run a networking group for young professionals.