Gap 1 — You insure the sale price, not the rebuild cost

Your Coverage A (dwelling) limit should equal what it costs to rebuild the home — materials and labor — not what you paid for it (land has no rebuild cost) or its market value. In hot labor markets the two diverge sharply, and after any lumber/trades inflation your limit can silently fall $50k-$150k short of a full rebuild.

Ask your carrier for a replacement-cost estimate (or run one online) and set Coverage A to that number. "Extended/guaranteed replacement cost" endorsements add a buffer for a few dollars a month — worth it.

Gap 2 — Sub-limits that surprise you on claim day

Item	Typical cap	The catch
Jewelry / watches	$1,000-$2,500 total	Need a "scheduled personal property" rider for full value
Water backup	Often $0-$10,000	Sewer/sump backup needs an endorsement
Home business equipment	~$2,500	A real home office needs a business rider
High-end electronics	Varies	Check limits; theft/loss may not be covered

Gap 3 — "Actual cash value" vs. "replacement cost" on your stuff

Coverage C (personal property) pays one of two ways. Actual cash value (ACV) subtracts depreciation — your 4-year-old TV comes back as a fraction of what a new one costs. Replacement cost (RCV) pays what it takes to buy new. RCV costs a bit more and is almost always worth it.

Gap 4 — Flood is never included

Standard homeowners covers sudden water from inside (a burst pipe) — not water from outside (flood, storm surge, groundwater). One inch of floodwater averages tens of thousands in damage, and your HO won't pay a cent. If you're anywhere near a flood zone (or even just unsure), a separate NFIP or private flood policy is the fix.

The cheap checks that close most gaps

1. Confirm your dwelling limit against a rebuild-cost number, not your mortgage balance.
2. Add water-backup and sump-pump coverage — usually $2-$10/mo.
3. Schedule jewelry and collectibles; a rider costs roughly 1-2% of the item's appraised value per year.
4. Switch personal property from ACV to RCV.
5. Re-check limits after any renovation — a finished basement or new kitchen raises your rebuild cost.
6. Document the house now (photos, a video walkthrough, receipts) so a claim isn't a memory test.