6 Unique Homeowners Insurance Endorsements
Did you know that in addition to your homeowners insurance there are several popular and unique Homeowners Insurance Endorsements you can add for additional coverage?
Each homeowners policy comes with standard coverages which include your home, any outbuildings, and your personal belongings which protects them from major perils such as fire and storm damage. In addition to that coverage, there are several ‘add ons’ that a homeowner could add to their policy called insurance endorsements. Some of these insurance endorsements are more appropriate for the area of the country you live in or the type of home you own.
At The Resource Center, our slogan is “Simple Solutions in a Complex World.” We educate our clients to make sure they understand their policies by using simple terms and real-life scenarios. In this post, I hope to explain some unique homeowners insurance endorsements that you might benefit from.
Water and Sewer Backup Insurance Endorsements
One thing that basic homeowners insurance does not cover is water and sewer backup. In my opinion, if you have a basement home, you’ve got to have this insurance endorsement. What this insurance endorsement covers is a scenario where you have a sump pump or water from the sewer that backs up into your basement. It may also cover basement flooding from stormwater.
Limited Water Protection Insurance Endorsements
Limited water protection adds coverage for the event of hidden water seepage in the walls. An example could be your ice maker line. There is a small leak you’re unaware of in the ice maker hose. Unbeknownst to you, water has been leaking out of that hose for a long time, then one day the wall starts leaking. This insurance endorsement will add coverage for the repairs related to this type of damage.
Damaged and Matching Siding or Roofing Coverage
I have had a personal benefit from this insurance endorsement. Two years ago my home suffered damage from a tornado, high winds ripped off parts of my siding, and I had hail and debris damage to my roof. Under basic homeowners coverage, the insurance company WILL replace the damaged siding and shingles. However, it is likely that the coverage will not replace ALL the siding and shingles. This can leave your home miss-matched with some siding, gutters, and shingles from the 1980s and some from 2020.
With the damaged and undamaged siding and damaged and undamaged roof replacement endorsement, you have the coverage to replace ALL of the siding and shingles to make sure everything matches.
Service Line Protection Insurance Endorsements
Another endorsement, which I think is really neat, is called service line protection. The service lines that run from your house to the street are not covered by the utility company or your homeowner’s insurance. Adding the service line protection insurance endorsement provides coverage for common causes of service line failure such as wear and tear, rust and corrosion, mechanical breakdown, freezing or frost heave, and tree or other root invasions. That coverage may include repair or replacement with environmentally friendly materials, excavation costs, expediting expenses, and coverage for outdoor property.
Some examples of the types of service lines covered include communication, compressed air, drainage, electrical power, heating, sewer, and water. This coverage does not include septic systems or on-site wells.
Equipment Breakdown Insurance Endorsements
Equipment breakdown coverage is an insurance endorsement designed to protect possessions that typical homeowners insurance coverage does not. When household items fail, they often require sophisticated diagnostic tools and skilled technicians to oversee potential repair. The costs of both can add up quickly.
Equipment breakdown coverage protects you against unexpected repair or replacement costs due to a mechanical, electrical, or pressurized system breakdown. With equipment breakdown coverage, losses must be sudden, direct, and accidental. Overall wear and tear, the natural deterioration of a machine’s ability to perform its intended function, is specifically excluded from this coverage.
Special Coverage for Items
Most standard homeowners insurance policies carry some coverage for special items, for example, a wedding ring. However, with that coverage, if your ring flies off at the lake you have to pay a deductible AND the ring might only be covered up to a certain amount. What I recommend to my clients is to schedule their special items. That way we can make sure the entire value is covered and in most cases, you will have a zero deductible.
If your agent hasn’t made you aware of these unique endorsements you may want to consider giving me a call. If you haven’t shopped your insurance rates in the last 3 years there is a good chance I can find you more coverage at a better price.
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