Four Sections of an Insurance Policy

Back to: TelaClaims Adjuster I – Insurance Basics for Adjusting a Claim

There are four main sections to every insurance policy. These sections are in every policy regardless of the line of insurance you are dealing with.

The first section is the Declarations Page: This makes the contract specific to the policyholder. This section of the policy establishes

• Names of both parties
• Policy  Number
• Location and description of the insured item
• Value of insured item
• Dates of the policy
• Amount and limit of coverage
• Deductible
• Premium

The second main section is the Insuring Agreement, this section summarizes all of the following.

• What is covered
• Which causes of loss are covered
• Any services provided
• Any exclusions to coverage
• The policy limit

The third main section is the Conditions section, this section specifies any limits or qualifications the policyholder must meet. For Example,

• How to file a proof of loss
• How to protect the property after a loss

The fourth main section is the Exclusions section, this section specifies what the policy does not cover. Common exclusions in most policies include

• Earthquakes
• Flooding
• War
• Nuclear hazards
• Intentional acts