What does insurance policy mean for a homeowner?
Short answer. An insurance policy is the written contract between you and the insurance company: you pay premiums, and the insurer agrees to pay for specific kinds of losses under the terms written in it. A homeowners policy is made of several parts, including the declarations page, coverages, exclusions, conditions and endorsements, and the endorsements often decide how your roof is paid.
The parts of a homeowners policy
- Declarations page: the summary with your name, address, policy period, coverage limits, deductibles, premium and list of endorsements.
- Insuring agreement: the insurer's promise to provide coverage in return for premium.
- Definitions: what words like you, dwelling, occurrence and actual cash value mean in this policy.
- Coverages: dwelling, other structures, personal property, loss of use, liability and medical payments.
- Perils and exclusions: what causes of loss are covered and what is excluded, such as flood, wear and tear, and earth movement.
- Conditions: your duties after a loss, the appraisal process, how losses are settled, and suit limitations.
- Endorsements: add-ons that change the base policy, such as a percentage wind and hail deductible or a roof payment schedule.
Where roof coverage lives
The roof is part of the dwelling, but how it is paid often depends on the loss settlement condition and roof-specific endorsements. Two neighbors with the same insurer can have very different roof coverage because of one endorsement.
Get the whole policy
Many homeowners only see the declarations page. Ask your agent for the full policy form and every endorsement, and keep a digital copy you can reach after a storm.
Next: roof replacement coverage, payment schedule endorsements and the appraisal clause.