Home Endorsements 2.0
If you are unaware of what a home endorsement is, think of it like the following. You are out at a restaurant for dinner. You order your main course (your basic home insurance policy), but you would like a few sides and a drink with your meal. Think of the sides and the drink as endorsements. They are added on coverages to your home insurance policy for a small extra cost, or none at all. This newsletter will dive into some of the most common home endorsements that are well worth the cost.
Water Backup Coverage
A popular endorsement among homeowners with finished basements is Water Backup Coverage. This covers if your sump pump overflows or a drain backs up and causes water damage (subject to a deductible). Some carriers even include this endorsement in their home policy they offer.
Water Backup Coverage is not to be confused with flood insurance. For instance, if there is a large amount of rain, and water were to seep into your basement from a window, this would not be covered under Water Backup Coverage. This endorsement only covers a backup of a drain or sump pump. For more info on water damage and insurance see the previous newsletter on our blog page.
Service Line Coverage
Service Line Coverage is becoming more and more popular and might be the coverage you never knew you needed. This endorsement covers the cost of repairs for damage to underground service lines (water, waste disposal/drainage, gas, electric, among other service lines). The damage covered must be caused by (but not limited to) normal wear and tear, rust, rodents/animals, freezing, and plant root invasion. Damage caused by the insured or a third party is not covered. It is also important to note that septic tanks, wells, sprinkler systems, and water lines to a pool are excluded under this endorsement.
This endorsement is very common with expensive jewelry and other valuable items. For example, a valuable wedding or engagement ring can be scheduled on a homeowner’s policy for its appraised value. Scheduling jewelry or other valuable items insures the property from a direct physical loss. Some insurance carriers offer a “blanket” form of this endorsement, meaning a stated amount covers a number of lesser valued items.
A newer type of property some companies are allowing to be scheduled is a boat dock or lift. The list of perils insured against include wave action and ice shoves, which are more common in larger lakes and bodies of water. This coverage can apply to both permanent and removable docks and lifts.
Cyber Coverage covers electronic theft, wire fraud, along with a specified list of additional cyber crimes. If there was money stolen through one of the covered perils and your bank does not reimburse you, this coverage will up to a specified limit.
Matching Siding Coverage
Another newer coverage being offered by more and more insurance carriers is a matching siding endorsement. Let’s say a storm comes through, damages, and rips off some of the siding. Depending on when your siding was last replaced, it may be impossible to find siding that matches the undamaged parts of your home. The matching siding endorsement covers the re-siding of your entire home in this case, up to a specified coverage limit.
No Two Carriers are the Same
The endorsements described in this newsletter are general overviews. Each carrier has its own list of endorsements that may or may not include those discussed here. The endorsements they do offer are most likely their own unique version and may have coverage specific to the carrier.
**Your CRG agent placed you with your insurance carrier for a number of reasons. Ultimately, the main factors are balancing price and coverage offered. If you are interested in a specific endorsement being added to your home policy, be aware your carrier may offer a different version or not offer it at all. The benefit of having a CRG agent is you can have an open discussion about a certain coverage and they can provide you with options they recommend.