diff --git a/backend/src/modules/health-scores/health-scores.service.ts b/backend/src/modules/health-scores/health-scores.service.ts
index 762d516..ffd73a2 100644
--- a/backend/src/modules/health-scores/health-scores.service.ts
+++ b/backend/src/modules/health-scores/health-scores.service.ts
@@ -220,6 +220,14 @@ export class HealthScoresService {
         missing.push(`No budget found for ${year}. Upload or create an annual budget.`);
       }
 
+      // Should have reserve components (warn but don't block)
+      const components = await qr.query(
+        `SELECT COUNT(*) as cnt FROM reserve_components`,
+      );
+      if (parseInt(components[0].cnt) === 0) {
+        missing.push('No reserve components found. Add reserve components (roof, parking, pool, etc.) with replacement costs for an accurate funded-ratio calculation.');
+      }
+
       // Should have capital projects (warn but don't block)
       const projects = await qr.query(
         `SELECT COUNT(*) as cnt FROM projects WHERE is_active = true`,
@@ -997,8 +1005,8 @@ Reserve Cash (bank accounts): $${data.reserveCash.toFixed(2)}
 Reserve Investments: $${data.totalInvestments.toFixed(2)}
 Total Reserve Fund: $${data.totalReserveFund.toFixed(2)}
 
-Total Replacement Cost (all components): $${data.totalReplacementCost.toFixed(2)}
-Percent Funded: ${data.percentFunded.toFixed(1)}%
+Total Replacement Cost (all components): ${data.totalReplacementCost > 0 ? '$' + data.totalReplacementCost.toFixed(2) : '$0.00 (no reserve components entered — funded ratio cannot be calculated)'}
+Percent Funded: ${data.totalReplacementCost > 0 ? data.percentFunded.toFixed(1) + '%' : 'N/A — no reserve components with replacement costs have been entered. Do NOT report a 0% funded ratio; instead note that funded ratio is unavailable due to missing component data.'}
 
 Annual Reserve Contribution (budgeted income): $${data.annualReserveContribution.toFixed(2)}
 Annual Reserve Expenses (budgeted): $${data.annualReserveExpenses.toFixed(2)}