Must Ask Insurance Question #2

“Are there limits to the policy that don’t show up on the declaration page?”

The Declaration Page of your policy is that first page that summarizes the coverage for your property, liability, some options etc. While most quotes consist of only a declaration page and most shoppers only compare the declaration page, there can be significant distinctions between two policies if you move deeper than that first page.

1.On a home insurance policy, you might be surprised to find that a roof is only covered for “Actual Cash Value” instead of full “Replacement Cost”. You might also discover that one company won’t charge a deductible for a broken window while another will. This would mean that the first company is offering a nice convenient way to replace glass while the other is not. Special limits on certain types of personal property are only found inside the policy as well. Is $500 in cash coverage enough for you? If not, you need to ask about these other limits.
2.On an auto policy, there can be a huge difference in “Permissive Use” coverage. One company may offer a lower premium but if you loan your car to someone, the liability limits drop to the state minimums rather than the higher limits you think you are buying. How they cover you if you rent a car can vary greatly as well.

Endorsements and exclusions are how the policy will be interpreted at the time of a claim. That’s not the time you want to discover that a policy doesn’t cover something. A good agent will be able to answer this question about each company he/she is quoting for you.