Which section of a property policy details the terms of coverage and limits?

The insuring agreement is the section of a property policy that outlines the core terms of coverage and limits provided by the insurer. It specifies what risks are covered under the policy, detailing the scenarios or types of damage that the insurance will respond to. This section serves as a cornerstone of the policy, giving the insured a clear understanding of the protection being offered.

In contrast, the declarations section primarily includes basic information about the policy, such as the address of the insured property, the names of the insured parties, and the coverage limits; however, it does not detail the specific terms and conditions of the coverage itself. The exclusions section outlines what is not covered by the policy, providing clarity on limitations or scenarios where the insurer will not provide coverage. The conditions section details the obligations of the insured and the insurer, such as policy maintenance and procedures to follow in the event of a loss, but it does not define the coverage terms like the insuring agreement does. Thus, the insuring agreement is essential for understanding the protections one has under a property policy.