A Video Explaining how to Read and Interpret the Homeowners Policy

The Homeowners 3 – Special Form

A type of Homeowners 3 – Special Form for the American Association of Insurance Services, Inc (AAIS) - HO 00 03 01 06 is included used as a basis for this analysis. Samples are available here. The following is an analysis of the important parts of the basic homeowner’s insurance policy. Unlike the Standard Fire Insurance policy the Homeowners 3 is written in “easy to read” language rather than precise legal wording. The following analysis is presented to assist the insured in reading the policy but is not a replacement for actually reading the entire wording of the policy with consideration of the facts of the loss to which the policy might apply.

The Insuring Agreement

This policy, subject to all of its "terms", provides the described insurance coverages during the policy period. In return "you" must pay the required premium. Each of the Principal Coverages described in this policy applies only if a "limit" is shown on the "declarations" for that coverage.
This is the basic agreement telling the insured that coverages only exist if they are specified in the declarations page. Regardless of coverages provided by the basic wording if not specified in the declarations page there is no coverage for that risk.