What a Connecticut homeowners policy actually covers, the gaps that surprise people after a loss, and how to set coverage so a claim pays what you need. Written by a local agent who reads these policies every day.
A standard Connecticut homeowners policy (HO-3) covers your house, other structures, belongings, personal liability and extra living expenses after a covered loss like fire, wind, hail or theft. It does not cover flood, earth movement, gradual wear, or — in most cases — crumbling foundations. The two decisions that matter most are setting the dwelling limit to true replacement cost and deciding whether you need flood coverage on top.
By Ken O'Hara, CT licensed agent #20221083 · Updated September 26, 2026 · General information, not a coverage determination — your policy language controls.
Most Connecticut homeowners carry an HO-3 policy. It's organized into six parts, and each has its own limit:
Condo owners carry an HO-6 instead, which covers the interior of the unit, belongings and liability while the association's master policy covers the building. Renters carry an HO-4. Some newer or higher-value homes qualify for an HO-5, which covers belongings on the broader open-perils basis rather than a named list.
Your dwelling limit should equal what it would cost to rebuild your home today — not its market value, and not what you paid. Land doesn't burn, so market value is the wrong yardstick; construction cost is the right one.
This is where most underinsurance happens. Construction costs rose sharply in recent years, and many policies still carry dwelling limits set years ago. If your limit is too low, you pay the difference out of pocket after a total loss. Older Connecticut homes with plaster walls, hardwood, slate roofs or custom millwork are especially likely to be underestimated.
Two add-ons help: extended replacement cost pays a percentage above your limit if rebuilding costs more than expected, and ordinance or law coverage pays to bring an older home up to current building code when it's rebuilt. We review both with every home we quote.
Flood. Every standard homeowners policy excludes flood, including water from rivers, storm surge and surface water. It needs a separate policy through the NFIP or a private carrier. See our Connecticut flood insurance guide.
Crumbling foundations. Thousands of homes in north-central and eastern Connecticut — including parts of Tolland and Hartford counties — were built with concrete containing pyrrhotite, a mineral that causes foundations to crack and deteriorate over time. Homeowners policies generally do not pay for this kind of gradual deterioration. The state-created Connecticut Foundation Solutions Indemnity Company (CFSIC) helps eligible homeowners with replacement costs; as of 2026 its per-home cap is $205,000 for a standalone home. If you own a home built in the affected region, get it tested and talk to CFSIC before you assume anything about coverage.
Sewer and drain backup. Water backing up through drains or a failed sump pump is excluded unless you add a water backup endorsement. In Connecticut, with finished basements and heavy spring rain, it's one of the most valuable add-ons for the price.
Wells, septic and equipment breakdown. Rural homes on private wells should look at equipment breakdown and service line coverage, which pay for failed pumps, boilers and buried lines.
High-value items. Jewelry, watches, furs and collectibles have low theft sublimits. Scheduling them covers them at appraised value.
Most policies have a flat all-perils deductible — $1,000 to $2,500 is common. Near the Connecticut shoreline, many carriers also apply a separate hurricane or named-storm deductible expressed as a percentage of your dwelling limit, often 1% to 5%. On a $500,000 home, a 2% hurricane deductible is $10,000. Know which deductible applies to which event before storm season, not after.
Liability coverage protects your savings, home equity and future income if someone is hurt on your property or you're sued. $100,000 is a common minimum, but most homeowners are better served by $300,000 to $500,000 — and anyone with meaningful assets should look at an umbrella policy, which adds $1 million or more for a relatively small premium.
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