Explainer
How to read your homeowners insurance policy
Read the declarations page and the other sections of a homeowners policy, and learn what each coverage pays for.
Satisfy+ Editorial · Published August 21, 2026 · 2 min read
Satisfy+ is not an insurance agent, broker or adjuster. Your policy's wording controls.
At a glance
- Where to start
- The declarations page
- Coverages
- Dwelling, other structures, belongings, loss of use, liability, medical payments
- Usually excluded
- Flood and earthquake
A homeowners policy runs to dozens of pages, but the numbers that matter in a claim are on the first one, the declarations page. It lists the policy number, the dates the policy runs, the insured address, the mortgage holder, each coverage and its limit, the premium and any discounts.
The parts of the policy
After the declarations page come four sections. The insuring agreement summarizes the coverages and the perils, or causes of loss, the policy covers. A named-perils policy lists the losses it covers, and an all-risk policy lists the ones it excludes. The exclusions section lists what isn't covered. The conditions section sets out your duties after a loss and defines the policy's terms. Any coverage you added or increased is in the endorsements.
The coverages
| Coverage | What it pays for |
|---|---|
| Dwelling | The house and what is attached to it, including the plumbing, heating and electrical systems |
| Other structures | Buildings that aren't attached, such as a detached garage, a shed or a fence |
| Personal property | Your belongings |
| Loss of use | Living expenses if you can't live in the house after a covered loss |
| Personal liability | An accident in which you injure someone or damage their property |
| Medical payments | Medical bills for people injured on your property |
A typical policy limits what it pays for jewelry, heirlooms, antiques and art.
The deductible
The deductible is what you pay toward a claim before the policy pays. It can be a dollar amount or a percentage, and the declarations page shows which. Ask your agent how the deductible applies to each coverage.
How belongings are paid for
A policy pays for belongings in one of two ways. Replacement cost pays to replace or rebuild with similar materials, without subtracting for depreciation. Actual cash value pays what the item was worth after depreciation.
What it usually leaves out
Flood and earthquake are typically excluded from homeowners and renters policies, and cars and animals are excluded from personal property coverage. Flood coverage comes from a separate policy, such as one from the National Flood Insurance Program.
An annotated example
What to do next
Find your declarations page in the insurer's app or the renewal packet. Check that your name, the property address and the dates are right, because a wrong address can cause problems with a claim. Check that the mortgage holder's address matches your lender's records. Look over the discounts, and ask about any you qualify for that aren't listed. Save the page with your house records.
Add the homeowners policy to the house record
- Add the homeowners policy to the house record
- Read the homeowners policy at renewal
FAQ
Does homeowners insurance cover a flood?
Typically not. Most homeowners and renters policies don't cover flood damage, and flood insurance is a separate policy.
What does loss of use pay for?
Living expenses, such as a hotel and meals, if you can't live in the house after a covered loss.
Sources
Checked October 19, 2026
- National Association of Insurance Commissioners. Understanding your homeowners or renter's policy (2024)
- FloodSmart, National Flood Insurance Program (FEMA). Buy a flood insurance policy (2026)
- Owner
- Insurance cost
