5 Way Other Agencies Will Cut Your Coverage

When comparing homeowners insurance quotes, it’s tempting to focus on price alone. What many people don’t realize is some agents reduce coverage just to make a quote look more appealing on paper. These shortcuts might save a few dollars upfront—but they can cost you far more when a claim happens. It’s important to work with an agent who explains your policy—not just sells it to you.

Here are five common ways other agencies may cut corners on your coverage—and what to watch out for.

Switching Replacement Cost to Actual Cash Value

One of the most common ways some agencies quietly reduce your coverage is by changing your policy from Replacement Cost to Actual Cash Value (ACV)—and it can cost you big when it matters most.

Replacement Cost coverage means your belongings or home will be repaired or replaced with brand new items of a similar kind and/or quality—without deducting for depreciation. It’s designed to help you recover fully after a loss.

Actual Cash Value, on the other hand, factors in depreciation. That means your claim payout reflects what your items are worth at the time of loss, not what it costs to replace them.

To put this difference into perspective, imagine a hurricane damages your home, and your mattress is destroyed. A five year old mattress under Actual Cash Value coverage may only reimburse you for a small portion of what you originally paid. Replacement Cost coverage, however, would allow you to replace it with a new mattress of similar quality.

The same goes for everyday items like clothing. If you lose a closet full of clothes in a fire or flood, Actual Cash Value would reimburse you based on their age and wear. That means your favorite two-year-old jeans and work clothes might only get you a few dollars back per item—not nearly enough to replace a full wardrobe.

This switch may not be obvious until you file a claim—so it’s important to ask your agent what kind of coverage you’re really getting. A trusted agent will always walk you through the difference and explain what’s best for your situation, not just what’s cheapest on paper.

Adding a Roof Schedule Endorsement

A similar concept to Actual Cash Value is a Roof Schedule Endorsement, which is becoming more common in the State of Florida. By adding a Roof Schedule Endorsement clause, your premium may drop without you realizing the risk you are taking. 

Let’s say your roof is 15 years old and a hurricane tears through your neighborhood. You file a claim, expecting the cost of repairs or a full replacement to be covered. But with a roof schedule endorsement in place, your payout could be reduced to a fraction of the full replacement cost—because the roof is considered to have “used up” most of its value due to age. The older your roof is, the less the insurance company pays.

This can leave homeowners blindsided, footing thousands of dollars out-of-pocket for roof work they assumed was insured.

Florida’s high risk for wind and hurricane damage makes this especially important. If your policy includes a roof schedule, and your roof is nearing the end of its life expectancy, your coverage for one of your home’s most expensive features might be extremely limited when you need it most.

A good agent should point this out, explain your options, and help you weigh the trade-offs—not sneak in limitations that save on premiums but leave you exposed during storm season.

Removing or Reducing Law & Ordinance Coverage

Another area where cutting coverage could have costs adding up in the future is trimming Law and Ordinance coverage. Law and Ordinance coverage pays for required upgrades to your home when you’re repairing or rebuilding after a covered loss. These upgrades are based on current building codes—not what was in place when your home was built.

Here’s why that matters: If your home suffers storm damage and you file a claim, your insurance may cover the cost to fix what was damaged to its previous condition—but if local code requires upgrades during the process (and your policy doesn’t include Law and Ordinance), you could be responsible for paying for those code upgrades out-of-pocket. And they’re not optional. In Florida, these upgrades often include items like adding or replacing windows and/or shingles.

Without Law and Ordinance coverage, you could be hit with thousands of dollars in required improvements—on top of dealing with storm damage and unexpected repairs.

Homeowners with newer builds may not feel the impact right away, since most newer homes are already up to code. But if your house is more than twenty years old, it’s likely that at least some codes have changed since construction. Without this coverage, you’re the one footing the bill.

A responsible agent will always check for this and explain the value of keeping Law and Ordinance coverage intact. Cutting it to save a few bucks now could leave you unprepared when the next storm hits.

Leaving Out Key Endorsements

It’s easy to assume that a standard homeowners policy covers everything on your property—but that’s not always the case. Some of the most common gaps we see are from missing small endorsements that make a big difference when it’s time to file a claim.

Two examples we come across often are water/sewer backup and screened enclosure coverage. Most homeowners are surprised to learn that these are not automatically included in their policy. Without the proper endorsements, damage to your patio screens or a backup that floods your home may be completely uncovered—leaving you to handle repairs on your own.

When a knowledgeable agent adds these protections, it’s not about padding your premium. It’s about making sure you’re not caught off guard later. These endorsements are typically low-cost, but they fill in critical coverage gaps that many clients don’t realize exist until it’s too late.

Unfortunately, not every agent takes the time to point these things out. Some will leave off endorsements to keep the quote looking cheaper or simply to get the policy issued quickly. Cutting corners like that can lead to expensive surprises when a claim is denied for something you thought was covered.

A good agent will explain what’s included, what’s not, and what’s worth adding—so you can make informed decisions about your protection.

Cutting Your Liability Limits

One of the easiest ways to lower a quote—and one of the most damaging—is by reducing your liability coverage without properly informing you on what this coverage means.

Liability coverage protects you financially if someone is injured on your property or if you’re legally responsible for damage to someone else’s property. It covers things like medical bills, legal fees, and court settlements. But here’s the catch: if your limits are too low, you could end up paying the difference out of pocket.

Oftentimes, we see new clients come to us who have only been given the minimum—typically something along the lines of $100,000 in liability coverage and just $1,000 in medical payments. At O’Quinn Insurance, we recommend liability coverage to be $300,000 in liability and $5,000 in medical when available.

That extra protection adds only about $30 a year to the policy—but the difference in coverage is massive. You’re trading a few dollars for an extra $200,000 in protection, which could make all the difference if someone sues you or suffers a serious injury on your property.

What’s most concerning is that many agents don’t address this coverage with their clients. They quote the lowest limits to keep the premium low and get the sale—but they’re not setting you up with real protection. A good agent will take the time to walk you through your options and explain why those numbers matter.

Make Sure You Know What You’re Paying For

Insurance shouldn’t leave you guessing. If your current agent hasn’t walked you through these coverage details, you might be paying for a policy that won’t protect you when you need it most.

At O’Quinn Insurance, we believe in transparency, education, and giving you real peace of mind—not just a low premium. Our team takes the time to explain your options and make sure there are no surprises later. Having the right coverage isn’t just about what fits the budget. It’s about what protects your home, your family, and your future.

Not sure what your current policy really covers?
Let’s take a look together.

Call us at 386-200-9834 or contact us for a free coverage review—no pressure, just honest advice.