The Declarations Page: Your Policy at a Glance

The declarations page (often called the ‘dec page’) is the summary of your policy. It’s usually the first one or two pages of your policy document and contains the most important information at a glance: your name and property address, the policy period, your coverage types and limits, your deductible, and your premium amount.

Start here when reviewing your policy. Make sure your property address is correct, your coverage limits reflect the actual replacement cost of your home, and your deductible amount is what you expected.

Coverage Types: What Each One Protects

Standard homeowner’s policies are divided into several coverage categories:

• Dwelling Coverage (Coverage A): Covers the structure of your home — walls, roof, floors, built-in appliances. This is the most critical coverage amount. It should reflect what it would cost to rebuild your home, not its market value.
• Other Structures (Coverage B): Covers detached structures like garages, sheds, and fences. Typically set at 10% of your dwelling coverage.
• Personal Property (Coverage C): Covers your belongings — furniture, electronics, clothing, appliances. Review whether your policy covers personal property at ‘actual cash value’ or ‘replacement cost value.’ The difference can be significant.
• Loss of Use / Additional Living Expenses (Coverage D): Covers temporary housing and additional living costs if your home is uninhabitable after a covered loss. Make sure you know this coverage exists and how to use it.
• Personal Liability (Coverage E): Covers legal expenses if someone is injured on your property.

The Perils Section: What Causes of Damage Are Covered

Perhaps the most important part of the policy to understand is which ‘perils’ (causes of damage) are covered. Most standard policies are either ‘open perils’ (also called ‘all-risk’) or ‘named perils.’

An open perils policy covers all causes of damage except those specifically excluded. A named perils policy only covers the specific events listed in the policy. Open perils is generally broader and provides better protection.

Common perils covered by standard Illinois homeowner’s policies include wind, hail, fire, lightning, and theft. Common exclusions include flood, earthquake, and gradual deterioration. Review your exclusions carefully.

Deductibles: What You’ll Pay Out of Pocket

Your deductible is the amount you’re responsible for before your insurance kicks in. Many policies now have separate, higher deductibles specifically for wind and hail damage — sometimes expressed as a percentage of your dwelling coverage rather than a flat dollar amount. A 1% wind/hail deductible on a $300,000 home means you pay the first $3,000 of a wind or hail claim yourself.

Know your deductible before you file a claim. Filing a claim for damage that’s less than or close to your deductible may not be worthwhile, and multiple small claims can sometimes affect your premium.

Policy Limits and Replacement Cost vs. Actual Cash Value

One of the most important distinctions in any insurance policy is whether your coverage is based on ‘replacement cost value’ (RCV) or ‘actual cash value’ (ACV). Replacement cost pays what it would cost to repair or replace the damaged item at today’s prices. Actual cash value pays the replacement cost minus depreciation.

This difference is enormous for older properties or older roofs. An ACV policy might pay only a fraction of what it actually costs to replace a 15-year-old roof, because the insurance company will deduct for its age. If your policy is ACV-based, you may want to consider upgrading to RCV coverage.

Working with Red Line Adjusting on Policy Review

As part of every claim we handle at Red Line Adjusting, we conduct a thorough review of the policyholder’s insurance policy. We look for all applicable coverage, identify potential gaps, and make sure the claim we prepare takes full advantage of the benefits you’re entitled to.

Policy language can be complex and technical. Having a professional review your coverage — especially at the time of a claim — ensures you’re not leaving benefits unclaimed simply because you weren’t aware they existed.

Final Thoughts

Your homeowner’s insurance policy is a contract, and understanding what’s in it is one of the smartest things you can do as a property owner in Illinois. Take some time to review it now — before you need it. And if you have questions about your coverage or need help with a claim, we’re here to help.

📞 Need help with your insurance claim? Contact Red Line Adjusting for a FREE consultation: (331) 684-0470 | redlineadjusting.com