Homeowners Insurance Policy Basics for Beginners
By Josh Miner, licensed agent and owner of Miner Family Insurance in Edmond, OK. Updated October 2026.
A homeowners insurance policy has four main parts: the declarations page (your coverages, limits and deductibles), the insuring agreement (what the insurer promises to pay for), the conditions (your responsibilities, like reporting claims promptly) and the exclusions (what is not covered). Most policies include six coverages, from dwelling to medical payments. Reading your declarations page first is the fastest way to understand what you have.
Key takeaways
- Start with your declarations page. It summarizes everything that matters.
- Dwelling coverage should equal your home's rebuild cost, not its market value.
- Oklahoma policies usually have a separate wind and hail deductible.
- Flood and earthquake are excluded and need separate policies.
- Endorsements let you add coverage, like water backup or scheduled jewelry.
How to read your homeowners insurance policy, step by step
- Declarations page: Check your named insured, address, policy dates, coverage limits, deductibles and premium.
- Coverages: Review each coverage, A through F, and its limit.
- Deductibles: Note your all other perils deductible and your wind and hail deductible in dollars.
- Roof settlement: Look for any roof payment schedule or actual cash value roof endorsement.
- Exclusions: Know what is not covered so you can add coverage if needed.
- Endorsements: Review add-ons that expand or restrict coverage.
- Conditions: Understand your duties after a loss and how claims are settled.
What do the six homeowners coverages mean?
- Coverage A, dwelling: Repairs or rebuilds your house.
- Coverage B, other structures: Detached garages, fences and sheds. See
what counts as an other structure.
- Coverage C, personal property: Your belongings.
- Coverage D, loss of use: Extra living costs if you cannot live at home after a covered loss.
- Coverage E, personal liability: Injuries or damage you are legally responsible for.
- Coverage F, medical payments: Small medical bills for injured guests.
What is excluded from a standard homeowners policy?
- Flood
- Earthquake and earth movement
- Sewer and drain backup, unless you add
water backup coverage
- Wear and tear, neglect, mold and pests
- Business activity in the home, in most cases
What should first-time homeowners check before buying a policy?
- Dwelling limit matches rebuild cost
- Replacement cost on the dwelling and belongings
- Roof coverage terms and roof age rules
- Wind and hail deductible you can afford
- Liability limit that protects your savings
- Discounts for bundling, new roofs and alarms
New to all this? Start with our
homeowners insurance glossary.
Frequently asked questions
What is a declarations page?
The summary page of your policy listing your coverages, limits, deductibles, premium, policy period and insured property.
What is the difference between HO-3 and HO-5?
An HO-3 covers the house on an open perils basis and belongings on a named perils basis. An HO-5 covers both on an open perils basis, which is broader.
How much dwelling coverage do I need?
Enough to rebuild your home at today's construction costs. Market value and purchase price are not the right numbers because they include land.
Does homeowners insurance cover my roof?
Usually for sudden damage like hail and wind. Older roofs may be paid at actual cash value, and cosmetic damage to metal roofs may be excluded.
How often should I review my policy?
Every year at renewal, and after remodels, major purchases or a new roof.
Want help understanding your policy?
Miner Family Insurance will walk through your policy in plain English and compare 50+ carriers. We are rated 5.0 stars by 322 Google reviewers. Call (405) 724-2389 or
request a home insurance quote.
