How do you read a commercial property insurance declarations page?

The declarations page (commonly called the "dec page") is the front section of a commercial property insurance policy that summarizes all critical terms at a glance. For apartment owners, understanding each section is essential to verifying that coverage matches what was quoted and meets lender requirements.

The key elements include: the named insured (which should be the property-owning entity, not an individual), the policy period (effective and expiration dates), the mailing address, and the broker of record. The covered locations section lists each insured property with its address and individual coverage amounts. For a multi-property owner, each building should appear with its own building limit, business personal property limit, and loss of rents limit.

The coverage summary shows the property coverage form (typically ISO CP 00 10 on a special form or broad form basis), the causes of loss form (ISO CP 10 30 for special form), the applicable deductibles (both flat-dollar and percentage deductibles for wind/hail or named storm), and any sublimits for specific perils like water damage or ordinance or law. The valuation basis—replacement cost or actual cash value—appears here and directly affects claim payments.

The premium breakdown shows the base property premium, liability premium, and each endorsement's additional cost. Terrorism coverage premium is disclosed separately as required by TRIA. Compare these figures to your broker's proposal to confirm accuracy.

Critical items to verify include: coinsurance percentage (80%, 90%, or 100%, or agreed amount), whether loss of rents coverage matches at least six months of gross rental income (as required by most agency lenders), the vacancy clause threshold (typically 60 days), and whether all mortgagees and additional insureds are correctly listed. Any errors on the dec page should be corrected immediately by endorsement, as the dec page controls in the event of a conflict with the policy forms.