Common Policy Endorsements You Should Ask About in Homeowners Insurance

What Are Policy Endorsements?

When it comes to protecting your home and belongings, a standard homeowners insurance policy may not cover everything you need. That’s where policy endorsements come in. These add-ons allow you to customize your coverage to fit your unique circumstances, offering protection against risks that aren’t included in basic policies.

As property damage claims lawyers, we understand how important it is to have the right coverage in place. Let’s explore what policy endorsements are, why they matter, and which ones you should consider adding to your policy to ensure your home is fully protected.

Why You Need to Consider Endorsements

Endorsements can be especially useful for homeowners in areas prone to natural disasters or those with unique needs, such as high-value belongings or rental properties. Without them, you could face significant out-of-pocket expenses in the event of damage or loss.

Essential Homeowners Insurance Endorsements to Ask About

Sewer or Drain Backup

A sewer or drain backup can cause extensive damage to the interior of your home, often leaving you with significant cleanup and repair costs. This endorsement covers damage from sewage or water backing up into your home, so you’re protected against a messy and expensive situation.

Replacement Cost Coverage

Standard insurance policies typically reimburse you based on the depreciated value of damaged items, which means they pay you the value of the items at the time they were damaged, not the value of the items at the time you bought them or the amount it may cost to replace them. This can leave you in a situation where you might not have  enough to replace the damaged items. Replacement cost coverage ensures you’re reimbursed for the full cost of replacing damaged or destroyed items with new ones, helping you rebuild without financial strain.

Scheduled Personal Property

High-value items like jewelry, antiques, artwork and collectibles often exceed the coverage limits of a standard policy. A scheduled personal property endorsement provides additional coverage for these specific valuables.

Ordinance or Law Coverage

If your home is damaged and needs to be rebuilt or repaired to meet updated building codes, a standard policy may not cover the increased costs. Ordinance or law coverage addresses these expenses, ensuring you’re not left footing the bill to bring your home up to code.

Watercraft Liability

If you own a boat or other watercraft, accidents or damage involving the boat or watercraft  may not be covered under a standard homeowners policy. Adding a watercraft liability endorsement ensures coverage for incidents involving your boat or watercraft.

Home Business Coverage

For those who run a business from home, standard homeowners insurance often falls short of covering business equipment or liability. A home business endorsement extends your coverage to include work-related equipment and liability issues.

Flood Insurance

Flooding is one of the most common and destructive natural disasters, yet standard homeowners insurance does not cover flood damage. A flood insurance endorsement protects your home and belongings from water damage caused by storms, overflowing rivers, or heavy rain, ensuring that, when your property is damaged from a flood, you’re not left to cover these expenses on your own.

Earthquake Insurance

If you live in a seismically active area, earthquake insurance is a necessity. Standard policies exclude damage caused by ground movement, which can result in significant repair costs. This endorsement provides coverage for structural damage to your property caused by earthquakes.

Contact Us for Help

Homeowners insurance is an essential safety net, but it’s not one-size-fits-all. Policy endorsements allow you to tailor your coverage to address risks unique to your home, location, and lifestyle.

At Averill & Reaney, we know the frustration and stress that can come with property damage claims. Our team specializes in helping homeowners navigate insurance policies, fight for fair compensation, and ensure they’re protected against future risks. Contact us today to schedule a consultation.