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The Policy Trap Checklist

Before you assume a policy covers the thing you care about, check these eight lines. Print it, save it, or keep it open next to your policy. We will never ask for your email address to read it.

Fine Print · Insurance Explainer

1. 1

   Settlement basis. Find whether your policy pays replacement cost or actual cash value, especially for the roof. The two can differ by tens of thousands of dollars on the same claim.

2. 2

   Separate storm deductibles. Look for wind, hail, hurricane, or named storm deductibles listed as a percentage of your dwelling coverage rather than a flat dollar amount.

3. 3

   Sub-limits on valuables. Jewelry, watches, firearms, electronics, and art often carry their own caps, sometimes $1,500 or less per category.

4. 4

   The exclusions section. Flood, earth movement, sewer backup, and mold caps are the exclusions that surprise people most. Many denied claims come down to exclusions and conditions people never knew were in their policy.

5. 5

   Water damage wording. Check how your policy treats sudden versus gradual water damage, and whether water or sewer backup coverage was added.

6. 6

   Loss assessment limit. Condo and townhouse owners: compare your loss assessment limit to your association's master policy deductible. They are often mismatched.

7. 7

   Business use of your home. If you work from home or run a side business, look for business property limits and liability exclusions.

8. 8

   Claim timing rules. Note the deadlines for reporting a claim, submitting proof of loss, and completing repairs to collect held back depreciation.

CoverageDecoder is an educational tool, not insurance advice. For decisions about your coverage, talk with your licensed insurance agent.