How to read your homeowners policy before a 2026 disaster strikes

Most homeowners read their insurance policy for the first time during a claim. That's a bad time to discover what isn't covered.

Standard Indiana homeowners policies, usually written on the HO-3 form, cover most common damage scenarios, but they have specific exclusions, sub-limits, and endorsement options that meaningfully change coverage. Here's the checklist I wish every homeowner in Hamilton County would walk through with their agent before they need it.

1. Open your declarations page

The "dec page" is the 1-2 page summary at the front of your policy. It lists your dwelling limit, personal property limit, loss-of-use limit, liability limit, deductibles, and any endorsements you've added. Most policies in 2026 dwelling limits should reflect actual rebuild cost: not market value. If your dwelling limit is much lower than what it would cost to rebuild your home today, you're underinsured.

2. Verify your dwelling coverage matches rebuild cost

Construction costs in Indiana have risen substantially since 2020. If your policy hasn't been adjusted upward in 3+ years, your dwelling limit may not cover a total loss. Ask your agent for a rebuild-cost calculator update.

3. Check your water/sewer backup endorsement

Standard HO-3 policies exclude damage from sump pump failure, sewer line backup, and certain other forms of water intrusion unless you have the endorsement. This is the single most commonly missed coverage in Hamilton County. Many policies cap the endorsement at $5,000-$25,000, and you can usually buy higher limits for very little additional premium.

4. Look for mold coverage limits

Standard policies typically cap mold coverage at $5,000-$10,000. Higher limits are available as endorsements. Because mold is so often a consequence of unaddressed water damage, the cap matters: if water damage isn't fully mitigated quickly, the mold remediation cost can blow past the cap.

5. Check ALE (Additional Living Expenses) coverage

ALE pays for hotel, meals, and other living costs while your home is uninhabitable. Coverage is typically 20-30% of your dwelling limit. If you'd need to relocate for 3-6 months during a major restoration, do the math: 3 months at $200/night in a hotel is $18,000. Many policies have low ALE limits that don't cover extended displacement.

6. Understand wind/hail deductibles separately

Many Indiana policies have separate wind/hail deductibles that are higher than your standard deductible: sometimes 1-5% of dwelling value. Read the fine print.

7. Verify scheduled personal property

Standard policies cover personal property at 50-70% of dwelling value, but with sub-limits on specific categories: jewelry, art, electronics, firearms, collectibles. If you have high-value items in those categories, you may need to "schedule" them: itemize and insure separately, for full coverage.

8. Check your liability limit

Standard policies cover $100K-$300K of liability. If you have meaningful assets, consider a personal umbrella policy that adds $1M+ of liability coverage for typically $200-$400/year.

9. Read the exclusions section carefully

This is where the surprises live. Common exclusions on Indiana HO-3 policies:

• Flood from rising surface water (requires separate flood policy)
• Earthquake (separate endorsement)
• Long-term water seepage or neglect
• Wear and tear / maintenance issues
• Vacant home losses if home is vacant 30+ days
• Damage from animals or pests
• Sometimes: damage from poorly-maintained sump pumps or known plumbing issues

10. Save your agent's direct number: not the claims hotline

The claims hotline routes to a contractor's call center that processes claims by script. Your agent can often resolve coverage questions faster, advocate for you on disputes, and connect you with the right specialty adjuster.

What good insurance navigation looks like during a claim

If you do experience a loss, here's what good insurance navigation looks like:

1. Immediate mitigation, you and your restoration company start work without waiting for adjuster approval.
2. Prompt notification: your agent gets a call within 24 hours of the loss.
3. Documentation: photos, videos, and a written timeline submitted with the claim.
4. Xactimate-grade scope from your restoration contractor that the adjuster can review directly.
5. Pushback on undervalued estimates: supplemental claims supported by additional documentation.
6. ALE activation if you'll be displaced for more than a few days.

For our full insurance claim navigation guide, see our insurance claims help page.