What is an insurance declaration document?

Definition

The insurance declaration document summarizes what is in your insurance policy. It comes at the beginning of your paperwork. It defines elements such as your deductible, coverage, discounts, and more.

Key Takeaways

The insurance declaration document summarizes what is in your insurance policy. It comes at the beginning of the policy documents and contains information such as your deductible, coverage, discounts, and more. You should verify the accuracy of your declaration document as soon as you receive it. Errors can make it difficult to file a claim. You may need to show this page to the lender as proof of coverage.

Definition and Examples of the Insurance Declaration Document

The insurance declaration document is part of your insurance policy. It comes at the beginning of the policy documents and summarizes key data about your insurance. Alternative name: policy declaration page, declarations page. Abbreviations: DEC page, dec page.

For example, you will receive a declarations page when you purchase a new car insurance policy.

How Does the Insurance Declaration Document Work?

The insurance declaration document is part of your insurance policy. You will receive it once your insurance policy is issued. It comes after the insurance binder document and should contain the same data that was sent to you in the binder document.

Despite the name, the document may be longer than one page. Depending on your coverage details, it may extend across several pages. You should receive a new page every time you purchase or renew an insurance policy.

Note: The insurance binder document is a temporary document that outlines your coverage. It can be shown as proof of insurance until you receive your policy documents. Those documents will include your declaration document.

The declaration document is the main part of your insurance policy. It shows:

• The main coverages that dictate how a claim is paid
• The limits for each section
• The imposed premiums
• Who is insured and what is covered

The declaration document contains all the key information about your contract, including what is covered, how to file a claim, and other details. You should review the declaration document in detail to ensure its accuracy.

Common issues that can be found in insurance declaration documents may include:

• Errors such as misspellings in name or address
• Incorrect type of coverage (for example, named peril insurance instead of open peril insurance)
• Incorrect limits
• Incorrect coverage amounts
• Missing endorsements
• Missing discounts

All items you requested or agreed upon when accepting your new policy should be on the declaration document. Any errors can make it difficult to file a claim. If you find any errors, contact your agent to correct them.

Once you have finished reviewing your document, keep the declaration document in a safe place, as it is part of your contract.

Note: Following the declaration page is the legal text, which outlines the terms found in the declaration page and how they apply to a claim. The legal text will help you understand what each section of your insurance policy means. It will also tell you how it applies to your property.

What Does the Insurance Declaration Document Cover?

The insurance declaration document summarizes the key data from your insurance policy, which should include:

• Policy number
• Name and address of the policyholder
• Who is covered and what is covered
• Name and address of the insurance company and contact information
• Type of coverage included in the policy
• Limits and liabilities
• Signatures
• Policy term
• Liabilities and additional fees
• Cost of insurance, often broken down into installments
• Other insured persons, such as banks
• Liability limits

Many declarations pages may also include the claims filing process. If this is not on the declaration page, it should be mentioned in a separate part of your paperwork.

Why Do You Need an Insurance Declaration Document?

In some cases, having your insurance declaration document on hand is beneficial. In other cases, it is required.

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For example, when shopping for insurance, it’s easy to carry your declaration page to compare products, and when you switch insurance companies, your new company will need proof of your current coverage.

If you have a loan on any insured property, the lender may request a copy of the declaration page. For instance, your car lender may ask for it because the declaration page will show the type of coverage and how much coverage your car has, while your insurance ID card will not. The declaration page will also show the lender who is listed as the loss payee and/or additional insured on the policy. Your mortgage bank may also request the declaration page for your home insurance.

Often, the insurer is the one who sends the declaration page to the lender, but sometimes it may get lost, and you’ll need to provide a copy.

Source: https://www.thebalancemoney.com/what-is-an-insurance-declaration-page-2645728