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🏠📑 The Homeowner’s Coverage Checklist: Are You Actually Protected?
We’ve decoded the “secret codes”, compared HO3 vs. HO5, and broken down the math behind ACV vs. RCV. Now it’s time to put everything together.
Before you renew your policy this year, run through this quick checklist to make sure your largest asset is truly protected.
✅ 1. Check the “Code”
Look at the bottom-left corner of your policy forms.
- Does it say HO3 or HO5?
Goal:
If you own high-value belongings or want the broadest protection available, ask your agent about upgrading to an HO5.
✅ 2. Verify Replacement Cost (RCV)
Review the Loss Settlement section for personal property.
- Does it say Actual Cash Value or Replacement Cost?
Goal:
Make sure you have RCV, so you aren’t paid “yard sale prices” for your belongings after a loss.
✅ 3. Confirm Your “Safety Net”
Look for an Extended or Guaranteed Replacement Cost endorsement.
- Does your policy allow for 25%, 50%, or even 100% above your dwelling limit?
Goal:
This protects you if construction and labor costs skyrocket after a major disaster.
✅ 4. Review Your Inflation Guard
Check whether your policy includes an annual Inflation Guard adjustment (often 4%–5%).
Goal:
This keeps your coverage limits aligned with rising material and labor costs—without you needing to remember to update them manually.
✅ 5. Identify Proprietary Language
Look for the copyright notice at the bottom of the policy.
- Does it list ISO / AAIS, or the carrier’s name?
Goal:
If the carrier wrote its own proprietary language, have an expert review it for exclusions or limitations that may differ from industry standards.
🧾 The Bottom Line
Insurance is not a “set it and forget it” product.
A 10-minute review today can save you six figures in a loss tomorrow.
Does your current policy pass the test?
If you’re not sure, reach out—I’m always happy to help decode the fine print.
