In an approach to parsing and analyzing contracts, one or more computer processors receive a policy agreement. The one or more computer processors parse the policy agreement for terms. The one or more computer processors compile a list of items associated with the terms in the policy agreement. The one or more computer processors associate each item of the list of items with one or more categories, wherein each category of the one or more categories defines an extent of coverage for each item. The one or more computer processors determine whether an item of a user is present in the list of items associated with the one or more terms in the policy agreement. The one or more computer processors determine the categories associated with the item. The one or more computer processors determine the extent of coverage for the item of the user based on the determined categories.