What Are Home Insurance Endorsements?
Have you ever wondered if your home insurance policy offers all the types of coverages that you need? If you want to make sure you have enough coverage for everything, you should talk to a homeowners insurance agent about your policy. During this conversation, the agent might talk to you about endorsements.
What Are Endorsements in Insurance?
In insurance, the word endorsement is commonly used to explain a change made in an insurance policy. An endorsement is typically a change made to a policy as a way of adding a provision of some kind to the policy. In most cases, people add endorsements to their policies to obtain extra coverage for something specific.
When a person adds an endorsement, the insurance agent will recalculate the premiums for the policy, write up the endorsement, and add it to the policy. The purpose of an endorsement is to provide coverage for items a person owns that are not covered under the person’s regular policy.
A policy can have just one endorsement on it, or it can have many. Some policies do not have any endorsements. Every situation is different, and every person requires a unique policy designed just for their situation.
What Types of Endorsements Do You Need?
If you have never heard of endorsements, you probably do not know if you need them. Here are some common types of endorsements people add to their policies:
- Valuable collection – If you own something that is worth a lot of money, your regular home insurance policy might not cover it if something happened to it. In this case, you should add an endorsement to the policy for the item to ensure that it is fully covered.
- Electronics – Some people add an endorsement to their policies to cover electronics. If, for example, a power surge struck your home and destroyed your electronics, an endorsement on your policy would offer coverage for replacing all those things, whereas your regular policy might only replace a certain dollar amount of electronics.
- Swimming pool – If you just put a swimming pool in your backyard, you will also need an endorsement for this. The same is true for a hot tub or any other type of major item you purchase.
In addition to covering certain items, you can also purchase endorsements for certain events. For example, regular homeowner’s insurance does not generally cover flood damages. If you want flood damage protection, you would need to add an endorsement that provides coverage for damage from flooding.
You can also purchase an endorsement that covers mold damage and removal, water damage, and problems with the systems in your home.
How Will Adding Endorsements Affect Your Policy?
Adding endorsements to your policy has two main effects. The first effect is that adding endorsements provides you with all the coverage you need. Without any endorsements, you might have certain parts of your home that do not have any insurance coverage. If you want everything covered, you might have to add endorsements.
The second effect you might see is a small increase in the price of your premiums. Each endorsement you add might cost a little bit of money. Therefore, if you add dozens of endorsements, you should expect to see a big increase in your premiums. If you add just one, you should not see much of a hike in your costs.
Homeowners insurance is a necessity if you own a home and want coverage on it, but every home insurance policy is different. If you would like to learn what types of endorsements you might need, contact The Trottier Insurance Group. We can give you a free quote for insurance and make sure that you are fully covered.