Updated January 1, 1 . AmFam Team
You have homeowners insurance to protect your home and everything in it. It gives you assurance that the things you work hard for will be covered from the unexpected. But to really gain that peace of mind, it’s important to understand what isn’t covered by your basic policy and why endorsements are key to filling in those gaps.
Let’s take a look at what home insurance endorsements are and how they offer a wider range of protection for your home.
A basic home insurance policy provides coverage up to a specific limit for your property, as well as sub-limits for higher value items.
For example, you may have an overall personal property coverage limit of $100,000, but your homeowners insurance policy only provides up to $1,500 of coverage for your jewelry. If your jewelry collection is worth more than that, you’re left with gaps in your protection.
That’s where an insurance endorsement comes in.
An insurance endorsement, also known as an insurance policy rider, is additional coverage you can purchase and add to your existing homeowners policy to fill any coverage gaps or uncovered events from your policy. Basically, it’s a change in your policy that enhances or restricts coverage. Endorsements help us to build you a customized policy that fits your unique needs.
Want to make sure you have the coverage you need and the right endorsements in place? Start by reviewing your current home insurance policy. You can do this by looking at your Declarations page, Coverage Summary Letter or scheduling a personal insurance review with your agent. Reviewing your policy will help make sure your property is covered for the right amount as well as specific types of events.
There are many different home insurance endorsements that can be added to your policy, but some of the most common include the following:
Scheduled personal property. Scheduled personal property (or itemized personal property) is an optional coverage you can add to your home insurance policy that not only provides more coverage for your higher valued items, but also for a greater number of risks than already listed on your policy.
A great example of scheduling personal property is adding extra coverage for your jewelry. Having an endorsement for your jewelry not only gives you a higher level of coverage to meet your needs, but you’ll also be covered for events that are excluded from your basic homeowners policy. For instance, are you worried about losing your jewelry? If your ring goes missing, having it insured with this endorsement can help cover the replacement cost — whereas your basic home insurance policy won’t cover it if it gets lost.
Home business coverage. Limited home business coverage is an optional coverage that small home-based business owners can add to an existing homeowners insurance policy. By adding this coverage, you’re extending the same liability limits and coverages of your personal home insurance to your small business.
Sewer backup and sump pump overflow. Your sump pump is designed to remove excess water that accumulates around your home’s foundation. If the system ever fails or the power goes out, water overflow may occur. And you're typically not covered for this type of damage with your homeowners insurance. Having water backup and sump pump overflow coverage gives you that important layer of protection.
Identity theft protection. Identity theft not only comes with financial loss, but you’ll probably have a lot of issues to resolve, like restoring your credit and financial reputation. Identity theft insurance offers restoration services to help make the process easier on you and your family.
Adding an endorsement to your home insurance policy adds an additional cost to your monthly premium — but don’t let that deter you. The amount is an affordable addition depending on your coverage needs, and if you ever face the unexpected, it’ll be worth the cost compared to what you could pay for damages or replacement costs.
Find out more about all the ways your homeowners insurance provides protection. Then get in touch with your American Family Insurance agent (Opens in a new tab) to customize your coverage and fill any gaps in your base policy. With the proper protection in place, you’ll get the peace of mind you deserve.