Top 7 Things to Look for in a Homeowners Insurance Policy

Insurance AdviceHomeowner ResourcesClaims & Coverage Tips

Sep 25

When disaster strikes, your homeowners insurance is supposed to protect you, not give you another headache. But all too often, homeowners find out after the fact that their policy had hidden gaps, sneaky exclusions, or hard caps that left them on the hook for thousands. At VIP Adjusting, we see this every day; well-meaning homeowners who trusted their insurance policy, only to get denied, delayed, or underpaid when they needed it most.

Here are the top 7 things you must look for when shopping for or reviewing a homeowners insurance policy. If even one of these is missing or limited, it could cost you dearly when you file a claim.

1. Appraisal Clause – Protect Your Right to Dispute

Why it matters: If your insurer underpays your claim and you disagree, an appraisal clause allows both sides to hire independent appraisers to settle the dispute without going to court.

What to look for: Make sure your policy includes an appraisal clause and that it allows the policyholder (you) to initiate it—not just the insurance company.

Pro tip: Avoid policies that say appraisal is “at the discretion of the insurer” or “not binding.” That’s code for you don’t have real recourse.

2. Water Damage Coverage – No $10K Cap

Why it matters: Water damage is one of the most common and expensive home claims. But many policies sneak in a $10,000 cap on non-weather-related water losses—such as a burst pipe or AC overflow.

What to look for: Look for policies that don’t include a hard cap on water damage. Ideally, water damage should be covered under Coverage A (structure) and B (other structures) without arbitrary limits.

Pro tip: Ask your agent if there is a separate $10K water cap endorsement—many add it quietly during renewals.

3. Matching Coverage – Uniform Appearance Clause - no 1% matching endorsement

Why it matters: If a portion of your tile floor or roof is damaged, matching coverage ensures the entire area gets replaced to match—not just the damaged pieces.

What to look for: Check for language about “reasonably uniform appearance” or a specific matching clause. In Florida, policies issued after January 1, 2023, must comply with matching statutes, but older policies may not. Do not purchase policies that have a 1% matching endorsement.

Pro tip: If your policy offers only patch repairs, it could leave you with mismatched floors, siding, or shingles.

4. Screened Enclosure and Lanai Coverage

Why it matters: Many Florida homes have pool cages or lanais—structures that are vulnerable to wind, hail, and hurricanes. Standard policies often exclude or severely limit coverage.

What to look for: Ask if your policy includes screened enclosure coverage or requires a separate endorsement.

Pro tip: Damage to your lanai from a storm could be denied if it’s considered non-covered property.

5. No Managed Repair Program or “Right to Repair”

Why it matters: Some policies let the insurer force you to use their contractor to make repairs—often with lower quality and minimal accountability.

What to look for: Policies with “Right to Repair” clauses give the carrier full control. Avoid this if possible.

Pro tip: Ask for a policy that allows you to select your own licensed contractor. Control of repairs means control of quality.

6. ALE (Additional Living Expenses) That Actually Covers You

Why it matters: If your home becomes uninhabitable after a covered loss, ALE coverage pays for a temporary place to live—hotels, rentals, meals, laundry, etc.

What to look for: Ensure ALE is based on actual loss sustained rather than a flat amount or short time period.

Pro tip: Policies with a 12-month or $10,000 cap can leave you stranded if rebuilding takes longer (and it often does).

7. No Anti-Concurrent Causation Clause

Why it matters: This clause lets insurers deny your claim if any part of the damage was caused by an excluded peril—even if the main cause was covered.

What to look for: Review the “Exclusions” section. If the clause is present, it might say: “We do not cover loss caused directly or indirectly by… such loss is excluded regardless of any other cause.”

Pro tip: This language is dangerous—it allows carriers to deny hurricane claims because of a little wear and tear or pre-existing damage.

Final Thoughts: Don't Wait Until After a Loss

Insurance policies aren’t written for clarity—they’re written to protect the insurer. That’s why reviewing your policy before a loss is essential. If your policy falls short in any of the 7 areas above, speak to your agent and request endorsements or consider switching providers. A few small changes now could mean tens of thousands in your pocket when you need it most.

And remember—if you’ve already suffered a loss and aren’t sure what your policy says, call a licensed Public Adjuster. At VIP Adjusting, we’ll review your policy and your damage, free of charge.

Need Help Now?

Call VIP Adjusting at 833-WITH-VIP (833-948-4847)
Or contact us online to schedule a free consultation.