Standard homeowners policies (HO-3 forms) rarely cover flood damage, earth movement, or sewer and drain backup — each requiring a separate endorsement or standalone policy purchased through a specialty carrier or the National Flood Insurance Program.
The Rebuild Cost Trap
Replacement cost coverage can lag behind actual rebuild expenses if your policy is not adjusted for regional construction inflation, leaving homeowners underinsured after major claims. Lumber, labor, and permitting costs have all outpaced standard inflation indices in recent years.
Seven Gaps Worth Checking
Flood, sewer backup, earthquake, scheduled personal property for valuables, ordinance-or-law coverage for code upgrades, service line coverage, and inflation-guard riders are the most commonly missed protections.
What To Do Next
Reviewing your dwelling coverage limit every renewal, adding scheduled personal property riders for jewelry or electronics, and confirming ordinance-or-law coverage are essential steps every homeowner should take before disaster strikes.