Home Insurance Articles

Using Special Policy Endorsements To Tailor Your Home Insurance Coverage

2010-10-05

Home insurance policies are designed to cover the basic dwelling and property of a homeowner. In order for homeowners to be sure that they are fully covered, they may want to add on certain home insurance endorsements. Endorsements can cover perils, personal property, inflation, the dwelling and liability.

Home insurance does not cover floods or earthquakes, so additional coverage might be advisable depending on the region in which you live. Wind and hail damage from storms is often not included in the home insurance if the property is in a coastal area, and an endorsement would be needed to add this coverage. Additionally most policies do not cover damage from plumbing problems, including mold; thus, home insurance endorsements can be affixed to the policy to cover this kind of damage.

Another kind of endorsement adds to the limited coverage that a home insurance policy provides. A rider for personal property replacement cost ensures that a claim would be covered at an amount allowing the homeowner to actually replace the item. Most policies reimburse the homeowner based on the value of the item when it was damaged or stolen considering the condition of the item minus depreciation.

Another endorsement concerned with personal property is a personal property endorsement that would cover luxury items such as jewelry, expensive electronic equipment, furs, art, valuable collections, and guns. These items normally exceed the limits in a standard insurance policy. The endorsement gives an agreed upon amount for the listed items that would be paid if a claim were filed for the loss of or damage to them.

Home insurance endorsements can include an inflation guard that raises the limits of your home coverage so that they keep up with inflation. Another endorsement of this type is guaranteed replacement cost coverage which would allow a homeowner to rebuild the home if destroyed.

A home insurance policy normally has some coverage for personal liability. A personal liability insurance endorsement raises the limits of that coverage. This coverage comes into play when someone is injured on your property or damage or injury to someone caused by your personal actions such as hitting a baseball through the neighbor's window.

The owner of an older home may want to add an ordinance endorsement to his policy. If the home has to be rebuilt, it will pay for the cost to bring the structure up to code with ordinances and building codes enacted since the home was originally built.

Home insurance endorsements take a basic homeowner's policy and customize it for the homeowner. These endorsements can be made at the time the policy is taken out and most can also be added to an existing policy.