A common policy declarations page can be used by the insured to show proof of insurance.
For example, when refinancing a home mortgage, it’s standard practice for the lender to ask the borrower to provide a copy of the declarations page for the homeowner’s insurance policy covering the home.
The lender needs evidence that the home is adequately insured before agreeing to fund the new mortgage. Without this evidence, it’s unlikely the lender would agree to the mortgage refinance.
Rather than asking to review the entire policy, the lender will instead ask for the policy declarations page as this will include a summary of the pertinent information.
Additionally, the lender may require that the homeowner’s insurance company issue a new policy declarations page at the time of the home refinance, frequently around the time of the loan closing.
This new declarations page will list the lender as the mortgagee, along with the new loan number and lender’s contact information.
