How to read a Farmers HO-3 policy

Farmers sells the HO-3 under the Smart Plan Home product line with three tiers: Standard, Enhanced, and Premier. The underlying form is industry-standard HO-3; the tiers differ on sublimits, replacement-cost defaults, and the package of automatic endorsements. Premier carries higher mold, water-backup, and ordinance-and-law sublimits than Standard.

Coverages A through F follow the conventional structure. Coverage A is the rebuild cost the carrier underwrote, not market value. Coverage B (other structures) defaults to 10% of A, Coverage C (personal property) to 50–75% of A.

Mold and fungus remediation is sublimited at $5,000 in the Standard tier and up to $25,000 on Premier. Water backup of sewers and drains is similarly tier-dependent. Ordinance-and-law coverage — the dollars to bring a damaged home up to current building code during repair — is often the most overlooked sublimit, defaulting to 10% of Coverage A but available as a 25% or 50% buy-up.

On older homes that require code upgrades (electrical panel, plumbing, structural retrofit) during a covered repair, the ordinance-and-law line is often where five-figure gaps appear.

Farmers uses both staff adjusters and independent adjusters depending on volume and region. Hail and wind claims in Texas, Oklahoma, and Colorado are typically routed through field adjusters who scope on-site using Xactimate. Roof scope disputes are common — patch vs. replace, partial replacement of slope, matching for cosmetic continuity.

Slab leak claims (water under a concrete foundation) can be contested as "earth movement" or "continuous seepage." Documentation of the discovery date and the source pipe is critical for the supplement.

Declarations page, policy form, every endorsement (Smart Plan Home variants often have several), carrier estimate, photos, any third-party reports (engineer, mold assessor), and the denial or partial-acceptance letter.