The under-discussed problem in 2026 personal lines is the gap between what a homeowners policy was written for in 2018 and what it would actually cost to rebuild that house today. Construction-cost inflation moved roughly 28% between 2020 and 2024 in central Ohio. The home you bought for $385,000 with a Coverage A of $310,000 is, in a total-loss scenario, looking at a rebuild bill closer to $420,000 — and the policy won't pay what isn't in the limit.
This is a different problem than market value, and the two get confused. Market value is what your home would sell for — it includes the land, the location, the neighborhood. Replacement cost is what it would cost to rebuild the structure from foundation up at current construction prices, on the same lot, to the same finish. The dwelling-coverage A figure on your policy is supposed to track replacement cost. Most policies that haven't been re-rated in three years don't.
Re-rating Coverage A is the first thing we do at every home renewal. It's the most consequential one. Below: the standard package, the endorsements worth paying for, the five home carriers we use, and the questions worth answering at renewal.
What's included in a standard HO-3 policy.
- Dwelling (A)
- The house itself — walls, roof, foundation, built-in systems. Should equal current rebuild cost, not market value or purchase price.
- Other Structures (B)
- Detached garage, shed, fence, pool deck. Usually 10% of Coverage A by default; can be increased by endorsement.
- Personal Property (C)
- Contents — furniture, clothing, electronics, tools. Default 50–70% of Coverage A; replacement-cost endorsement converts it from ACV (depreciated) to RCV (replacement).
- Loss of Use (D)
- Additional living expenses if your home is uninhabitable during repair — hotel, restaurants, etc. Usually 20% of Coverage A.
- Liability (E)
- Bodily injury and property damage you or family cause to others. Default $100K, recommend $300K minimum, pair with umbrella.
- Medical Payments (F)
- First-dollar medical for guests injured on your property regardless of fault. Default $1K–$5K.
Endorsements worth paying for.
- Replacement Cost
- Contents (Coverage C) paid at replacement cost rather than depreciated actual cash value. Often pre-bundled now, but worth confirming.
- Water-backup
- Sewer backup and sump-pump failure — neither is covered under standard HO-3. Essential for finished basements.
- Service-line
- Damage to underground utility lines (water main, sewer line, gas, electric) running to the house. $50–$100/year.
- Scheduled Personal Property
- Itemized coverage for jewelry, fine art, watches, firearms — no deductible, broader perils, worldwide coverage.
- Equipment Breakdown
- Mechanical/electrical breakdown of HVAC, water heaters, electrical panels, appliances. Useful in homes 10+ years old.
- Flood (separate NFIP)
- Not an endorsement — a separate policy through NFIP or private flood market. Required in FEMA Special Flood Hazard Areas, recommended in adjacent zones.
"In 2026, the Coverage A figure on a five-year-old policy is almost certainly low. Re-rate it. The premium difference between covering 92% of rebuild cost and 100% of rebuild cost is about $180 a year. The difference at total-loss is sixty thousand dollars."
Home carriers we use.
Cincinnati Insurance
Our flagship home carrier. Cincinnati's standard policy includes replacement-cost on contents, no separate endorsement required. They write competitively in the $400K–$1.2M dwelling range, which covers the majority of Worthington, Westerville, New Albany, and Dublin household values. Their claim service runs through a local field rep, not a 1-800 number.
Westfield Insurance
Ohio-domiciled, Westerville-based (their headquarters is twenty minutes from our office). Strong on suburban and rural Ohio risk, particularly properties with outbuildings or farm-adjacent acreage. We use Westfield heavily for Delaware County and Granville-area placements.
Erie Insurance
Competitive on multi-line bundles with auto. Erie's policy form includes guaranteed-replacement-cost on dwelling (no Coverage A cap if you've insured to value), which is unusual at this price point. Best on accounts with a clean claim history.
Auto-Owners
Strong on accounts where we're writing as a fresh placement. Auto-Owners is competitive on $300K–$800K dwellings and pairs well with their auto product for multi-line discount.
Liberty Mutual
The mortgage-bundling carrier — Liberty writes a lot of Ohio home accounts through mortgage referrals. We use them selectively, primarily for accounts where the client is moving away from the captive (Nationwide, State Farm) and wants a national-name carrier to land on.
Frequently asked home-insurance questions.
What's the difference between replacement cost and market value?
Market value is what your home would sell for; replacement cost is what it would cost to rebuild from foundation up at current construction prices. They are different numbers, often by 25–40% in 2026. Your dwelling-coverage A figure should track rebuild cost, not market value.
Does my policy cover flood damage?
No. Standard homeowners policies exclude flood. Flood coverage requires a separate policy through the National Flood Insurance Program (NFIP) or a private flood market. If you're in or near a FEMA Special Flood Hazard Area, we'll help you place it.
What is water-backup coverage and do I need it?
Water-backup covers damage from sewer-line backup and sump-pump failure — neither of which is covered under standard homeowners. In central Ohio, where finished basements are common, this endorsement is one we recommend on nearly every account.
Should I schedule my jewelry?
If individual items are worth more than $2,000–$3,000, yes. Standard homeowners caps theft of jewelry at $1,500–$2,500 in most policies. Scheduled personal property writes each item separately with no deductible and broader coverage (mysterious disappearance is covered, theft from anywhere worldwide, etc.).
What is equipment breakdown coverage?
An endorsement covering mechanical or electrical breakdown of major home systems: HVAC, water heaters, electrical panels, well pumps, appliances. Typically $50–$75/year and useful in homes more than 10–15 years old where major systems are nearing service-life.