diff --git a/CLAUDE.md b/CLAUDE.md
index 9fa9074..d0d39ca 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -2,12 +2,13 @@
 
 ## What this repo is
 
-This is a **Copier template repository**. Running `copier copy . /path/to/dest --trust`
-renders the `template/` directory into a new Python project. This repo is NOT a runnable
-Python application — it is the source that generates other applications.
+This repository is a **Copier template repository** (a meta-project). Running Copier against
+this repo **generates** a new Python project by rendering the `template/` directory into a
+destination folder.
 
-The `template/` directory contains Jinja2-rendered files (`.jinja` suffix or Copier
-conventions). Do not edit rendered output here; edit the source templates.
+> [!WARNING]
+> Copier can run **template tasks** during `copier copy`/`copier update`. Only use the
+> `--trust` flag with templates you trust.
 
 ## Directory structure
 
@@ -78,6 +79,28 @@ copier copy . /tmp/test-output --trust \
 
 Clean up afterward: `rm -rf /tmp/test-output`
 
+## Copy vs update (important)
+
+- **Generate** a new project: `copier copy TEMPLATE DESTINATION`.
+- **Update** an existing generated project to the latest template version: `copier update`.
+
+For updates, Copier works best when:
+
+1. The template includes a valid `.copier-answers.yml`.
+2. The template is versioned with git tags.
+3. The destination folder is versioned with git.
+
+### Never edit `.copier-answers.yml` by hand
+
+Do not manually change the answers file (`.copier-answers.yml`, controlled by `_answers_file` in
+`copier.yml`). The update algorithm relies on it and manual edits can lead to unpredictable diffs.
+
+### Handle update conflicts
+
+When Copier can't apply a change automatically you may see `*.rej` files. Review them before
+committing. The recommended approach is typically a pre-commit hook that forbids committing
+rejection files.
+
 ## How tests work
 
 Tests live in `tests/`. They use pytest to call `copier copy` programmatically,
diff --git a/README.md b/README.md
index b5a61eb..7aa4a4c 100644
--- a/README.md
+++ b/README.md
@@ -40,6 +40,10 @@ Prerequisites:
 - 🌱 Git
 - 🧩 `copier`
 
+> [!WARNING]
+> Generate from **trusted templates**: when a template uses Copier `tasks`, they run with the
+> same access level as your user.
+
 Generate a project from this repo root:
 
 ```bash
@@ -57,6 +61,8 @@ just ci
 - ✅ **`--defaults`**: accept defaults for all questions
 - 🔒 **`--trust`**: allow post-generation tasks (bootstraps `uv`, installs deps, runs checks, installs hooks)
 - 🤖 **`--data key=value`**: provide answers non-interactively (great for scripts)
+- 📌 **`--data-file path.yml`**: provide answers from a YAML file
+- 🔖 **`--vcs-ref ref`**: generate from a specific git ref (tag/branch/commit) of the template
 
 ## Template options 🧰
 
@@ -74,13 +80,27 @@ During `copier copy`, you’ll be prompted for:
 
 ## Updating a generated project 🔁
 
-Generated projects store answers in `.copier-answers.yml`. To update a project to the latest template:
+Generated projects store answers in `.copier-answers.yml`.
+
+For the update to work best, ensure:
+
+1. The template includes a valid `.copier-answers.yml`
+2. The template is versioned with git tags
+3. The destination folder is versioned with git
+
+Then, from inside the generated project folder (make sure `git status` is clean), run:
 
 ```bash
-copier update --trust --defaults
+copier update --trust
 ```
 
-This template is intentionally conservative about overwriting user-edited files (see `copier.yml` → `_skip_if_exists`).
+If Copier cannot apply some changes automatically, it may produce `*.rej` files containing unresolved diffs.
+Review and resolve those before committing.
+
+Important:
+
+- Never manually edit `.copier-answers.yml` — it can break Copier’s update algorithm.
+- This template is intentionally conservative about overwriting user-edited files (see `copier.yml` → `_skip_if_exists`).
 
 ## Developing this template 🧪
 
@@ -106,6 +126,14 @@ Other useful commands:
 
 ## FAQ ❓
 
+### Can Copier be applied over a preexisting project?
+
+Yes. Copier understands this use case (it powers features like updating).
+
+### Should I edit `.copier-answers.yml` manually?
+
+No. Updates rely on that file; editing it manually can lead to unpredictable diffs.
+
 ### Why is this “uv-first”?
 
 Both this template repo and generated projects expect a committed `uv.lock`. In CI and locally, `uv sync --frozen` keeps installs reproducible and fails fast on drift.
@@ -117,3 +145,8 @@ If you enable coverage upload in your CI setup, configure a GitHub **repository
 ## References 🔗
 
 - Copier docs: `https://github.com/copier-org/copier`
+- Copier docs (official): generating, updating, configuring, FAQ
+- `https://copier.readthedocs.io/en/stable/creating/`
+- `https://copier.readthedocs.io/en/v6.0.0/updating/`
+- `https://copier.readthedocs.io/en/stable/configuring/`
+- `https://copier.readthedocs.io/en/stable/faq/`
diff --git a/template/CLAUDE.md.jinja b/template/CLAUDE.md.jinja
index fdbacbb..a9c9740 100644
--- a/template/CLAUDE.md.jinja
+++ b/template/CLAUDE.md.jinja
@@ -22,6 +22,28 @@ just precommit-install
 | Full CI | `just ci` |
 {% if include_docs %}| Serve docs | `just docs` |{% endif %}
 
+## Copy vs update (important)
+
+- **Generate** a new project: `copier copy TEMPLATE DESTINATION`.
+- **Update** an existing generated project to the latest template version: `copier update`.
+
+For updates, Copier works best when:
+
+1. The template includes a valid `.copier-answers.yml` file.
+2. The template is versioned with git tags.
+3. The destination folder is versioned with git.
+
+### Never edit `.copier-answers.yml` by hand
+
+Do not manually change the answers file (`.copier-answers.yml`, controlled by `_answers_file` in
+`copier.yml`). The update algorithm relies on it and manual edits can lead to unpredictable diffs.
+
+### Handle update conflicts
+
+When Copier can't apply a change automatically you may see `*.rej` files. Review them before
+committing. The recommended approach is typically a pre-commit hook that forbids committing
+rejection files.
+
 ## Package structure
 
 Source code lives under `src/{{ package_name }}/`.
diff --git a/template/README.md.jinja b/template/README.md.jinja
index 5f1567a..b7c0602 100644
--- a/template/README.md.jinja
+++ b/template/README.md.jinja
@@ -11,12 +11,12 @@
 - **Docs**: MkDocs site in `docs/` (served via `just docs`)
 {%- endif %}
 
-## Quickstart
-
-Prerequisites:
+## Prerequisites
 
 - Python {{ python_min_version }}+
-- `uv` (install from `https://astral.sh/uv/`)
+- `uv` (install from https://astral.sh/uv/)
+
+## Quickstart
 
 Create the environment and install dependencies:
 
@@ -41,6 +41,33 @@ just ci
 - `just docs`
 {%- endif %}
 
+## Copier usage (generated-project docs)
+
+This project was generated with Copier.
+
+### Generating again
+
+If you run `copier copy` into a preexisting destination, Copier will "recopy" it and ignore prior history.
+This is **not** the recommended approach for updates when you want Copier to respect your project evolution.
+
+### Updating this project
+
+If the template includes a valid `.copier-answers.yml` file and both the template and this project are versioned with git tags,
+then you can update by running:
+
+```bash
+copier update
+```
+
+During updates, Copier compares the template evolution with your local changes and may create `*.rej` files when it can't resolve conflicts automatically.
+Review those files before committing.
+
+⚠️ Never edit `.copier-answers.yml` manually.
+
+### Trusted templates
+
+Generate projects only from trusted templates, as Copier tasks run with the same level of access as your user.
+
 ## Project layout
 
 - `src/{{ package_name }}/`: package source