Coverage deep-dive

7 hidden coverage gaps in your homeowners policy.

After reviewing thousands of declarations pages, these are the seven gaps we see almost every time. Most homeowners have at least three of them, and almost no one knows it.

1. 1

   ACV roof endorsement on a 10+ year-old roof

   $8,000–$20,000

   Carriers have quietly switched older roofs from replacement-cost to actual-cash-value settlement on renewal. On a 15-year-old roof, your $18k replacement claim might only pay $7k. Read your dec page for any line containing 'roof', 'wind/hail', or 'cosmetic damage'.

2. 2

   Percentage wind/hail deductible

   $5,000–$25,000 per storm

   If your deductible reads '2%' or '5%' instead of '$1,000', it's a percentage of your dwelling limit — not your loss. On a $500k home, that's $10k–$25k out of pocket before the carrier pays a dollar. And it resets per storm.

3. 3

   No water backup endorsement

   $5,000–$25,000

   Sewer or sump-pump backup is excluded from standard HO-3 policies. The endorsement costs $50–$100/year and covers thousands in damage that's otherwise 100% on you. Almost every homeowner with a finished basement should have it.

4. 4

   Dwelling limit not adjusted for construction inflation

   $30,000–$100,000+

   Construction costs are up 40%+ since 2019. If your dwelling limit hasn't been re-evaluated in 3+ years, a total loss could leave you tens of thousands short of actually rebuilding. Plus a coinsurance penalty on partial losses.

5. 5

   Liability limit stuck at $100k

   $200,000–$1,000,000+

   Default liability is $100k. One dog bite, pool incident, or auto-related claim against you can easily blow past that — and the difference is your house and savings. An umbrella policy adds $1M for ~$200/year.

6. 6

   Personal property on ACV instead of RCV

   $5,000–$30,000

   ACV pays depreciated value on your contents. A 10-year-old TV pays out at $180 instead of $500. Across a kitchen-fire-sized loss, ACV typically pays 50–70% less than RCV. Upgrade is usually $30–$80/year.

7. 7

   No ordinance & law coverage

   $10,000–$50,000

   After a major loss, current building codes apply — electrical, sprinklers, energy code, ADA, sometimes a full tear-down rebuild. Ordinance & law coverage pays the upgrade cost. Without it, you fund it.