When it comes to protecting your home, few documents are as important — or as misunderstood — as your homeowners insurance declaration page. For many Californians navigating an increasingly volatile insurance market, understanding what's actually covered (and what's not) can make the difference between peace of mind and financial distress.
Insurance expert Karl Susman, host of The Insurance Hour, breaks it all down — helping homeowners demystify the fine print and make smarter decisions. Let's unpack the essentials.
Every homeowners insurance policy begins with what's called the declaration sheet (or "deck page"). This is not just administrative fluff — it's the summary that personalizes your coverage. While the policy itself contains standardized legal language, the declaration page makes your policy unique by specifying:
Your policy number – the official identifier for your coverage.
Policy period – the exact start and end dates of coverage (usually effective from 12:01 a.m. on the first day).
Named insureds – everyone listed as covered under the policy.
Property location – the exact address being insured (double-check this — especially if your home has multiple street addresses).
The insurer's name and policy type.
It might look like a simple one- or two-page form, but this page defines who is protected, where, and for how much.
Most homeowners policies include several major lines of coverage. Susman breaks them down into easy-to-understand categories:
This is the heart of your policy — the amount the insurer will pay to rebuild or repair your home if it's damaged or destroyed. For example, if your dwelling coverage is $500,000, that's the cap the insurer pays toward reconstruction.
But beware: that figure must also cover architecture fees, city permits, and other costs tied to rebuilding. In a catastrophe where many homes are destroyed at once, construction costs can skyrocket due to labor and material shortages. That's why you may want an "extended replacement cost" endorsement, which can increase your coverage by 25% to 50% above the li ...
