If you are unaware of what home endorsements are, 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. This newsletter will dive into some of the most common home endorsements that are well worth it.
Water Backup Coverage
A popular endorsement among homeowners with finished basements is Water Backup Coverage. This covers you 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 the home policy they offer.
Water Backup Coverage is not to be confused with flood insurance.
For instance, if it rains a lot, and water were to seep into your basement from a window, this isn’t covered under Water Backup Coverage.
This endorsement only covers a backup from a drain or a sump pump.
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.
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.
Identity Fraud/Cyber Coverage
Another coverage that is increasing in popularity is Identity Fraud/Cyber Coverage. First off, Identity Fraud Coverage covers the costs of recovery if your identity was stolen. This includes attorney fees among other expenses to recover what was stolen.
A brand new coverage that is being introduced is an added cybersecurity coverage. 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 do so up to a specified limit.
Guaranteed Replacement Cost
There are many tools insurance agents and carriers use to make sure that your home is insured for the correct amount. However, if you are looking for an absolute guarantee that in the event of a total loss your home will be fully covered, this endorsement does just that.
There are certain guidelines to follow when this endorsement is added, specific to each carrier. These may include reporting any improvements over a specific dollar amount, keeping the home insured at the value agreed upon by the carrier, and accepting inflation increases to the amount of coverage.
Related Reading: Common Insurance Terminology
Personal Injury Coverage
This endorsement is an extension of your personal liability coverage. If you have an umbrella policy this endorsement is required.
No Two Carriers are the Same
The home endorsements described in this newsletter are general descriptions. 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.
How we help
Your CRG agent placed you with your insurance carrier for a list 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.
If you know of someone who could benefit from the services of a CRG Agent, forward this to them!