Your Policy, Explained.
This is a live preview of what your CLEAR Report looks like. All data below is representative — your report reflects your actual policy.
Policy Reviewed
Policy Form
HO-3 Special Form
Named Insured
Sarah M.
Property Address
4521 E. Camelback Rd, Phoenix AZ 85018
Policy Period
03/15/2026 — 03/15/2027
Settlement Basis
Replacement Cost Value (RCV)
Insurer Rating
A++ (AM Best)
Coverage Summary
Coverage Reality Check
Your Coverage A Limit
$425,000
As stated in policy
Estimated Rebuild Cost
$537,000
2,240 sq ft · Phoenix, AZ
Estimated Gap
$112,000
Potential underinsurance
Note: Based on current Phoenix metro rebuild costs of approximately $240/sq ft for a 2,240 sq ft home, estimated total replacement cost is $537,000. Your Coverage A limit of $425,000 falls short by an estimated $112,000 — before accounting for construction cost inflation during a prolonged rebuild. Your Extended Dwelling endorsement (up to 50%) does provide a buffer. Discuss a formal RCE with your agent.
Policy Analysis
Flood Excluded — No Separate Policy Identified
Flood damage is explicitly excluded under Section I — Perils Insured Against. The property is located in Yavapai County, an area subject to monsoon and flash flood events. No flood endorsement or separate NFIP policy was identified in submitted documents.
Jewelry Theft Sublimit — $3,000 Cap
Theft of jewelry, watches, furs and precious stones is subject to a $3,000 sublimit under Coverage C, regardless of the overall personal property limit. Items exceeding this value require a scheduled personal property endorsement.
Elevated All-Perils Deductible — $5,000
The insured bears the first $5,000 of any covered property loss before the policy responds. At a $5,000 deductible, minor to moderate losses may fall entirely below the deductible threshold.
Coverage A Potential Gap — Estimated $112,000 Shortfall
Based on the submitted square footage of 2,240 sq ft, estimated rebuild cost for this area is approximately $537,000. Current Coverage A limit is $425,000 — a potential gap of $112,000 in the event of a total loss.
No Scheduled Personal Property Endorsement
High-value items including fine jewelry, art, collectibles, musical instruments, and electronics may be subject to sublimits under the base policy. A scheduled endorsement is recommended for items exceeding coverage sublimits.
Water Backup Coverage Not Identified
No water backup or sump overflow endorsement was identified. Damage from drain backups or sump pump failure is typically excluded from standard homeowners policies.
Extended Dwelling Coverage Active — Up to 50%
Policy includes Extended Dwelling Coverage providing up to 50% additional coverage above the Coverage A limit in the event of a catastrophic loss that increases rebuild costs.
Replacement Cost Basis — Personal Property
Coverage C is written on a replacement cost basis. In the event of a covered loss, personal property will be replaced at current market value without depreciation deduction.
Real-World Scenarios
Flash flood damages ground floor
Flood is explicitly excluded under Section I. Without a separate NFIP or private flood policy, this loss would not be covered regardless of the amount.
Kitchen fire causes $45,000 in damage
Fire is a covered peril under your HO-3 policy. After the $5,000 deductible, the remaining $40,000 would be covered under Coverage A at replacement cost.
Jewelry stolen during burglary ($12,000 value)
Your Coverage C jewelry sublimit is $3,000. Only $3,000 of the $12,000 loss would be covered. A scheduled endorsement would have covered the full amount.
Total loss — wildfire destroys home
Your Coverage A limit of $425,000 plus the Extended Dwelling endorsement (up to $637,500 total) may cover a full rebuild, depending on actual costs. The estimated gap between your base limit and rebuild cost remains a risk.
Plain Language
Replacement Cost Value (RCV)
If your home burns down, the insurance company pays what it actually costs to rebuild it today — not what the home was worth or what you paid for it. This is the better coverage option.
All-Perils Deductible
The first $5,000 of any covered loss comes out of your pocket, every time. If your kitchen suffers $4,500 in damage from a burst pipe, you receive nothing from the policy.
HO-3 Special Form
Your policy covers your home structure against all perils except those specifically excluded (like flood and earthquake). Your personal property is covered against a named list of perils only.
Loss of Use (Coverage D)
If your home becomes uninhabitable due to a covered loss, the policy pays for you to live elsewhere — hotel, rental, meals — up to $85,000 while your home is being repaired.
Questions to Consider
Can you run a formal Replacement Cost Estimator on my home and confirm whether my Coverage A limit is adequate?
What would it cost to add a scheduled personal property endorsement for my jewelry collection, and what documentation do you need?
Is water backup coverage available as an endorsement on this policy, and what is the premium?
Given that I live in a flash flood area, what are my options for standalone flood coverage through NFIP or a private carrier?
My all-perils deductible is $5,000 — is there a lower deductible option and what is the premium difference?
Claim Readiness Guide
Create a home inventory
Document every item of value with photos, serial numbers, and estimated value. Store in cloud storage outside the home.
Know your policy number and carrier contact
Your policy number is SF-2847-991-A. State Farm claims: 1-800-SF-CLAIM. Save this now.
Photograph your home inside and out
Current photos establish pre-loss condition. Update annually. Store in cloud.
Understand your deductible obligation
You will owe $5,000 before any payment. Have this accessible in an emergency fund.
Schedule high-value items now
Contact your agent before a loss to add scheduled coverage for jewelry, art, or collectibles.
When a Claim Happens
Report immediately
Call State Farm at 1-800-SF-CLAIM as soon as the loss occurs. Delay in reporting can complicate or jeopardize your claim.
Document everything before cleanup
Photograph all damage before any remediation begins. Courts and adjusters rely heavily on photo evidence.
Mitigate further damage
You are required under your policy to take reasonable steps to prevent additional damage (e.g., tarp a damaged roof). Keep all receipts.
Request a written scope
Ask your adjuster for a written scope of loss before any settlement. Review every line item.
Know your right to dispute
Under Arizona law, you have the right to invoke the appraisal process if you disagree with the settlement amount. See Section I, Conditions.