🏠Standard HO-3 Coverage
Dwelling
Coverage A
structure itself
Other Structures
Coverage B
10% of A
Personal Property
Coverage C
50-70% of A
Loss of Use
Coverage D
20% of A
âś“ What's Typically Covered
Dwelling Perils
- • Fire and smoke damage
- • Lightning strikes
- • Wind and hail damage
- • Vandalism
- • Falling objects
- • Weight of ice/snow
- • Water damage from plumbing
- • Theft
Additional Coverages
- • Debris removal
- • Fire department charges
- • Temporary repairs
- • Trees/shrubs (limited)
- • Credit card fraud (limited)
- • Lock replacement
- • Property removal protection
❌ What's NOT Covered (Common Surprises)
These exclusions catch homeowners off guard every year:
🌊 Flood Damage
Never covered by standard policies. Requires separate flood insurance (NFIP or private).
🌍 Earthquake Damage
Excluded in most states. California requires separate earthquake policy.
🔧 Maintenance Issues
"Wear and tear" isn't covered. Neglected roof that leaks? That's on you.
đź’§ Gradual Water Damage
Slow leaks and seepage over time aren't covered. Sudden burst pipes are.
🦟 Pest Damage
Termites, rodents, insects—excluded. Get regular inspections.
🏠Sewer Backup
Often excluded unless you add endorsement. Very common and very expensive claims.
đź“‹ How to File a Claim (Step by Step)
Document Everything Immediately
Photos, videos, written notes. Capture damage before any cleanup. Time-stamp everything.
Prevent Further Damage
Tarp the roof, board windows, stop the water. You're required to mitigate—and these costs are covered.
Contact Your Insurer Promptly
Most policies require "prompt" notification. Don't wait weeks. Call within 24-48 hours.
Create Detailed Inventory
List every damaged item with purchase price, age, and current value. Receipts help enormously.
Get Repair Estimates
Get at least 2-3 contractor estimates. The adjuster will appreciate detailed documentation.
Meet with the Adjuster
Be present. Walk them through all damage. Point out things they might miss.
đź’ˇ Secrets to Maximizing Your Payout
📸 Over-Document
100 photos is better than 10. Video walkthrough with narration. You can't go back later.
đź’° Don't Accept First Offer
Initial offers are often low. You can negotiate. Get contractor estimates to support your position.
đź“ť Keep All Receipts
Temporary housing, meals, emergency repairs—all potentially reimbursable under Loss of Use.
🔍 Request Detailed Breakdown
Ask for itemized estimate showing how they calculated payout. Easier to dispute specific items.
⏰ Know Your Deadlines
Most policies have time limits on claims. Don't let them expire while negotiating.
👤 Consider Public Adjuster
For large claims ($50K+), a public adjuster works for you and typically increases payouts 30-50%.
ACV vs. Replacement Cost: Critical Difference
Actual Cash Value (ACV)
Pays depreciated value. Your 10-year-old TV is worth $100, not $1,000.
Cheaper premiums, much lower payouts.
Replacement Cost Value (RCV)
Pays to replace with similar new item. 10-year-old TV = cost of new comparable TV.
Higher premiums, but actually covers your losses.
Warning: Some insurers are quietly switching policies to ACV for roofs. Check your policy—this can cost you tens of thousands on a roof claim.
The Bottom Line
Know what's covered BEFORE you need to file. Flood, earthquake, and gradual damage are NOT covered—add endorsements if you're at risk. When filing: document obsessively, prevent further damage, and don't accept the first offer. Verify you have replacement cost coverage, not ACV. For major claims over $50K, a public adjuster typically pays for themselves many times over.