Are You Aware of These Common Homeowners Insurance Endorsements? You Should Be!

You've just purchased a home, secured a standard homeowners insurance policy, and feel good about protecting your financial risk that comes with owning a home.

But do you know what your standard policy covers and what common endorsements you should consider adding for your circumstance?

An endorsement or rider is an addition to a standard policy that covers specific risks or enhances existing coverage.
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Here are some of the most common endorsements:
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1. Water Backup Coverage: coverage for damages caused by water backup through sewers, drains, or sump pumps. It typically covers the cost of water damage remediation and repairs.
2. Sewer and Drain Backup Coverage: similar to water backup coverage, coverage for damages caused by sewer or drain backups.
3. Personal Property Replacement Cost: coverage for your belongings at full replacement cost vs actual cash value, without deducting for depreciation.
4. Structural Replacement Cost:  replacement cost coverage for your dwelling
5. Scheduled Personal Property: increase in coverage limits and specialized coverage for valuable items like jewelry, collectibles, etc.
6. Earthquake Coverage: coverage for earthquake-prone area to protect your home and belongings against earthquake-related losses.
7. Flood Insurance Coverage: Similar to earthquake coverage, coverage for flood-prone area.
8. Home Business Coverage: coverage for home-based business equipment, liability, and other business-related risks.
9. Identity Theft Coverage: coverage for identity theft that typically covers expenses such as legal fees, credit monitoring, and identity restoration services.

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These and other endorsements and their specific coverage vary depending on the insurance company and policy.

This is one more important reason to work with an experienced independent insurance agent who has access to numbers of insurance companies.

He can help you understand what your standard policy covers, what it doesn't, and guide you on endorsements you should consider adding to adequately minimize your financial risk.