What are Insurance Endorsements?
When it comes to insurance protection, it’s important to understand what your policy actually covers. And with all the confusing insurance jargon out there, sometimes that can be difficult. Educating yourself is the first step to gaining confidence in your coverage, and we’re here to help. Let’s start by learning about endorsements — key pieces of your policy that help protect what matters most.
What Does Endorsement Mean?
Simply put, an endorsement, which is also referred to as a rider, is a change to your insurance policy that enhances or restricts coverage. Endorsements help us to build you a customized policy that fits your unique needs.
Take your home insurance for example. An American Family homeowners policy gives you a specific amount of personal property and liability protection, but what if you need coverage beyond that limit? What if you run a business from your home, have a finished basement or own valuable jewelry? You’ll want to make sure you have the proper protection — and that’s where endorsements come in:
Home business coverage. You may think that your small home business is covered by your standard homeowners insurance policy, but that’s not the case. Actually, if you’re planning on conducting any business from your home and want coverage for events such as a customer slipping and falling on your front steps or coverage for damage to your business property, such as a fire ruining your equipment, you’ll need to add limited home business coverage and/or business property coverage.
Itemized personal property coverage. Most homeowners policies cover jewelry, but the coverage has a set limit. So if the total value of your jewelry is more than the jewelry limit in your policy, you’ll want to consider adding coverage. You can do this by increasing your total coverage limit for jewelry, or by itemizing specific jewelry items, which, in addition to providing higher dollar amounts of coverage, also provides coverage for a broader range of losses.
Sump pump failure coverage. Our water damage and sump pump failure coverage is designed to mitigate the cost of repairs caused by water leaking into a home due to a backed-up drain, malfunctioning sump pump or other pipe and drain faults. While it’s not automatically included in a homeowners policy, it can easily be added on for a fraction of what it would cost to repair and replace water-damaged items in your home. Find out more about water backup coverage.
And they’re not just available for your home policy — you may add endorsements to your renters policy, condo, auto and watercraft. No matter what you’re looking to protect, we can customize your coverage to make sure you’ve got the policy that’s right for you.
What‘s the Reason for Insurance Endorsements?
The purpose of an endorsement is to enhance your base policy — whether it’s your home, car or something else — so it protects everything you want it to. Endorsements let you customize your coverage to fit your specific needs by either adding, eliminating or modifying the coverage on your policy. Maybe you’ll have higher limits of coverage or be protected for a broader range of losses — whatever the case, endorsements are meant to give you peace of mind that, in the event of the unexpected, you have proper protection in place.
How Long Does an Endorsement Stay on My Policy?
An endorsement will stay in force until your policy expires. It can be renewed under the same terms and conditions as your basic policy. Though, if your endorsement specifies a term limit, it’ll be valid up to that point only.
Educate yourself on your options for endorsements by setting up a personal insurance review with your American Family agent. They’re your go-to for expert advice on all things insurance and they’ll guide you through your policy to help you determine if there are endorsements you should to consider. Connect with yours today.