What part of an insurance contract describes the covered perils and nature of coverage?

The insuring agreement in an insurance contract is a crucial section that outlines the specific covered perils and the nature of the coverage provided by the policy. This part explicitly states what risks the insurer is willing to cover, such as damage from fire, theft, or specific liabilities. It details the scope of protection, including the types of incidents that will be compensated, the obligations of both the insurer and the insured, and the intent behind the policy coverage.

In contrast, the declarations page typically provides key information such as the insured’s name, the insured property location, policy limits, and coverage period, but it does not delve into the actual coverage specifics. The exclusions section addresses what is not covered by the policy, highlighting limitations and specific situations where coverage may be denied. The conditions clause outlines the requirements and duties of the parties involved, setting forth obligations such as notice of claims or cooperation during investigations. Hence, it's the insuring agreement that specifically details and explains the perils and nature of the coverage applicable under the insurance contract.