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Your home is likely the largest investment you will ever make — and homeowners insurance is the financial backstop that protects it. Yet policies are often purchased at closing and forgotten for years, even as renovation projects increase rebuilding costs, valuable belongings accumulate, and liability exposures grow. An outdated policy can leave you dangerously underinsured when disaster strikes.

Use this checklist from Philadelphia Life Insurance Company to evaluate your current coverage or prepare for a new purchase. Working through each section takes less than an hour and can save you from devastating out-of-pocket expenses.

1. Verify Dwelling Coverage (Coverage A)

Dwelling coverage pays to repair or rebuild the structure of your home after covered perils such as fire, windstorm, hail, and vandalism. Your limit should reflect the full replacement cost — what it would take to rebuild at current construction prices — not the market value or purchase price of the home.

Check whether your policy uses replacement cost or actual cash value for the dwelling. Replacement cost pays to rebuild without depreciation deductions. If you have completed renovations — a new roof, kitchen remodel, or finished basement — inform your insurer so limits can be updated.

2. Review Other Structures (Coverage B)

Detached garages, sheds, fences, and gazebos fall under other structures coverage, typically set at 10 percent of your dwelling limit by default. If you have added significant outbuildings or a pool house, confirm that the automatic percentage provides adequate protection or request an increase.

3. Inventory Personal Property (Coverage C)

Personal property coverage reimburses belongings inside your home — furniture, electronics, clothing, appliances — after a covered loss. Standard policies set this at 50 to 70 percent of dwelling coverage, but high-value items may be subject to sublimits.

Walk through each room and photograph valuables. Note serial numbers for electronics and keep receipts for jewelry, art, and collectibles. Consider a home inventory app to maintain an updated record. If total belongings exceed your policy limit, increase coverage accordingly.

4. Confirm Loss of Use (Coverage D)

Also called additional living expenses, loss of use coverage pays for temporary housing, meals, and related costs if your home becomes uninhabitable during repairs. Default limits are often 20 percent of dwelling coverage for a set time period. Extended rebuilding timelines — common after regional disasters — can exhaust this benefit quickly. Evaluate whether higher limits or extended duration endorsements make sense for your area.

5. Assess Personal Liability (Coverage E)

Liability coverage protects you when someone is injured on your property or you accidentally cause damage to another person's belongings. Standard policies start at $100,000, which may be insufficient if a guest suffers a serious injury. Many advisors recommend $300,000 to $500,000, with an umbrella policy for additional protection if you have significant assets.

6. Check Medical Payments (Coverage F)

Medical payments coverage pays minor medical bills for guests injured on your property regardless of fault — typically $1,000 to $5,000 per person. While modest, it can prevent small injuries from escalating into liability claims.

7. Understand Your Deductible Structure

Homeowners policies often carry a flat-dollar deductible for most perils and a separate percentage-based deductible for windstorm or hail in certain regions. A two-percent wind deductible on a $400,000 home means you pay $8,000 before coverage applies. Know both figures and keep sufficient emergency savings to cover them.

8. Evaluate Key Endorsements

• Water backup — covers sewer and drain overflow damage, typically excluded from standard policies.
• Scheduled personal property — provides full-value coverage for jewelry, fine art, and collectibles above standard sublimits.
• Extended replacement cost — adds 25 to 50 percent above dwelling limits when rebuilding costs surge after a catastrophe.
• Ordinance or law — pays to bring a damaged home up to current building codes during reconstruction.
• Identity theft — reimburses expenses related to restoring your identity after fraud.

9. Know What Is Excluded

Standard homeowners policies exclude flood, earthquake, intentional damage, and normal wear and tear. Flood insurance requires a separate policy through the National Flood Insurance Program or private carriers. Earthquake coverage is available as an endorsement or standalone policy in seismically active regions. Understanding exclusions prevents the shock of a denied claim.

10. Schedule an Annual Review

Circumstances change. Marriage, children, home improvements, new valuables, and shifts in local construction costs all affect your insurance needs. Set a recurring reminder to review your policy each year and after any major life event or home project.

A licensed advisor at Philadelphia Life Insurance Company can walk through this checklist with you, identify gaps, and compare options across reputable carriers. Fifteen minutes of proactive review today can protect decades of equity and peace of mind tomorrow.