A rider or an endorsement in insurance coverage can be useful when your standard policy doesn't cover all your needs. You may take it out when you wish to cover additional items. Endorsements apply in different types of insurance, including auto and homeowners policies.Here's how purchasing an endorsement can help maximize your insurance protection.
What are Insurance Endorsements?
An insurance endorsement is an amendment to your insurance policy that modifies the specifics of your coverage. It serves a supplemental role when you already have a cover that provides basic protections, such as for your home, personal belongings, and liability in case of third-party losses. You may consider buying an endorsement to expand your protection to cover more items or increase your coverage limits for your primary dwelling place and personal properties.
Types of Homeowners Insurance Endorsements
Here are some insurance riders you may add to your existing policy and expand your protection:
Scheduled Personal Property
You can buy this endorsement to expand your coverage for specific types of personal properties. For instance, standard property policies don't usually cover valuable items like expensive jewelry or artwork. To include such items in your coverage, you can get an insurance endorsement.Keep in mind that a basic insurance policy for homes, condos, or even renters usually provides coverage up to a certain financial limit. To ease that coverage restriction for a specific item, you can buy a scheduled personal property endorsement. You may have the added rider increase the coverage limit to match the item's appraised value or cover it for additional perils.For example, a personal property rider may protect you from financial loss if you lose an expensive diamond ring. Standard homeowner policies wouldn't usually cover an item like that.
Water Backup Coverage
This endorsement covers your home and personal property in case of damage resulting from sewer, drain, or sump pump discharge. This protection holds even when mechanical problems caused the water backup.
Home Day Coverage
It's important to note that your basic homeowners insurance policy doesn't cover businesses, such as an in-home day care operation. Therefore, you'll typically need to purchase a separate protection for your home-based enterprise. In case you need to increase your limits, including those for your liability coverage, consider adding an endorsement to your standard homeowners insurance policy.Other supplemental endorsements you could add to expand your insurance protection include:
- Expanded protection for a new car
- Dwelling under construction coverage
- Food spoilage coverage
Understanding Insurance Endorsements and Deductibles
In some cases, you do not need a deductible to add an endorsement to your insurance policy. In such scenarios, an endorsement would cover the full cost of the claim in question. An insurance company may also let you pick a lower deductible if you buy a rider, for example, to add scheduled personal property coverage. Be sure to ask your agent if your deductible will still apply for items covered by the personal property component of your policy.
What's the Validity Period for an Endorsement?
Typically, an insurance policy and all its endorsements expire at the same time, according to the National Association of Insurance Commissioners
. Certain riders may have a limited term, though, which your policy should indicate. Also, you may renew an insurance endorsement when renewing your standard coverage.These are some of the essentials to keep in mind when looking to include an endorsement in your insurance policy. For all of your personal and commercial insurance needs, contact
the team at Humble & Davenport Insurance. We are here to secure your insurance policies across Renton and surrounding cities in Washington. Don't hesitate to give us a call today to discuss your insurance requirements. We are ready to secure the protection you need and deserve.