Insurance Endorsements: What Are They?
Updated March 1, 2021 . AmFam Team
Insurance endorsements or riders are extra coverages — in the form of amendments to an insurance contract — that typically enhance the protection and terms of the initial policy. Purchased separately from the basic policy, riders and endorsements be can added when you first pick up insurance. But here’s the good news: on some policies, you’re also able to add them after the policy’s active and upon renewal, too.
Endorsements and riders are added to an insurance policy to help fill coverage gaps or uncovered events in your current policy. They help you build a customized policy that fits your unique coverage needs.
When it comes to insurance protection, it’s important to understand what your base 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 and riders — they’re key pieces of your policy that can better protect everything you’ve worked so hard for.
How Do Insurance Endorsements Work?
When you make changes to your existing policy — adding or removing coverages, increasing or decreasing coverage limits, for example — you might be doing so with an endorsement or rider. They can be added at the time of purchase or at any point during your coverage, even at the time of renewal with certain policies.
Endorsements are used when base coverage is not enough, or when a change mandates additional coverage. A great example of that may be something like a jewelry purchase. You’ve increased the value of your personal property — perhaps exceeding the limits of your current policy coverage — so you would need to pick up an endorsement to cover that cost difference.
Although endorsements for valuables may come at an additional cost, they can offer real benefits by boosting your protection. Some endorsements exclude coverage — where certain losses or events are negated or not covered.
Why Do I Need Insurance Riders and Endorsements?
The purpose of an endorsement is to enhance your base policy — whether it’s your home, car or something else. They give you control of your coverage so you can customize the policy to your needs.
Endorsements and riders allow you to fine tune your coverage 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, policy endorsements are meant to give you extra peace of mind so that — in the event of the unexpected — you’ll have the right protection in place.
The Benefits of Having Insurance Endorsements
Insurance endorsements apply to a variety of things in your base policy — from additional protection on your personal items, to a simple address change. While the option to customize your policy at any time is certainly a benefit in itself, we think there are a couple of pretty common situations where an endorsement can really enhance the way you're protected:
Improved coverage for your belongings
When your personal belongings are valued beyond the sublimits of your policy, your insurance may not cover their total value without a rider. Sublimits are the maximum coverage on your policy for a specific type of loss, like jewelry.
Here’s how enhancing your coverage with riders and endorsements can really pay off: Suppose you own $5,000 in jewelry and the sublimit for personal property coverage on your homeowners initial policy is $3,500. Without an endorsement there would be a $1,500 gap that insurance wouldn’t pay.
By adding a rider to your policy — and paying for additional coverage on personal property, such as jewelry — you would spend a little extra per year for that added protection and that can translate to greater peace of mind.
Affordable deductibles for valuable items
Another great benefit of having insurance endorsements is that you won’t have to worry about some of the traditionally higher deductibles associated with personal property coverage. For example, if you had jewelry valued at $5,000 stolen, and your base policy’s property deductible is $2,000, you would only receive $3,000 on your claim.
But with a rider for the jewelry in place, you can select a deductible that works for your budget. If you chose an endorsement deductible of $100, your claim would reimburse you $4900 for the covered loss after meeting that deductible. Note that itemized endorsement deductibles for personal property range from $0 - $2,500.
Examples of Common Insurance Endorsements
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 insurance endorsements and riders 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 to protect you from losses related to your business, you’ll need to add limited home business coverage and/or business property coverage.
With it, you’ll have protection for covered events like a customer slipping and falling on your front steps or coverage for damages to your business property, such as a fire ruining your business’ office equipment.
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 sublimit 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 high-value pieces of jewelry, which — in addition to providing higher dollar amounts of coverage — also provides coverage for a broader range of losses as well.
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.
Endorsements for other insurance needs
Riders and endorsements aren’t just available for your home policy — you can stack them onto your renters policy, condo, auto and watercraft coverage, to name a few. 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.
How Long Does an Endorsement Stay on My Policy?
An endorsement will stay active until your in-force 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.
How to Get Insurance Endorsements
Educate yourself on your options for endorsements by setting up a personal insurance review with your American Family agent (Opens in a new tab). 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.
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- Is Bundling Insurance a Good Idea?
Having insurance is an easy decision. After all, it protects the things you work so hard for in life. Between your car, home and even your family's financial well-being, you have a lot to protect. Bundling insurance can make things simple by putting multiple types of coverages under one plan by one provider. It’s a good idea on paper, but is bundling insurance a good idea for your unique situation? Read on to learn how to make the smart choice.
What is Bundled Insurance?
You might not even be ready to ask, “Should I bundle home and auto insurance?” We should first answer a possibly more pressing question: “What is bundled insurance?” Simply put, bundling insurance means buying multiple types of insurance policies from one provider. The provider may offer to place some combination of your car, home, rental, umbrella, life, boat, RV, or other coverages under one plan.
The Benefits of Bundling Insurance
With that crucial first question answered, you might now be asking: “Why bundle insurance?” There are plenty of benefits, and we’ll go over some of the more popular reasons below.
1. Bundling saves you time
With our multi-product discount, you can save on your premium. It could apply if you bundle motorcycle and renters insurance, life insurance and RV, or just about any insurance you have. For example, you can save up to 23% by bundling home and auto insurance policies.*
2. Bundling saves you time
Managing even a single insurance policy involves a great deal of responsibility. You must ensure you have the right amounts and types of coverage, track your renewal dates, and make payments. Now imagine trying to balance multiple policies with multiple providers. Bundling puts everything together under one provider, easing the burden.
We make it even easier with the MyAmFam app. It lets customers view their premiums, effective dates and policy info all in one spot. It’s quick and easy to manage your insurance and pay all your policies at once. You can even set up AutoPay and schedule payments within the app. That way, you’ll never have to worry about missing a payment. Download it and sign up for My Account.
3. Bundling makes the claims process easy
If a covered event causes damage to more than one of your belongings, you won’t have to call multiple numbers. You’ll have one number for one insurance company, which can begin the claims process for all your belongings that need restoration.
Filing claims is easier at American Family Insurance with the MyAmFam app or My Account. You can easily file your claim anywhere at any time and track its status across every step. Our 24/7 claims department is always ready to help you get your life back on track.
4. Your agent is your bundling expert
When you bundle, your agent gets to know you and your insurance needs. They’ll identify any gaps in your coverage and make recommendations, so you’ll be protected against the unexpected.
Is Bundling Right for You?
The benefits of bundling insurance can be a big deal. Even so, be careful about jumping right into it. “Is bundling insurance a good idea?” isn’t always an easy question to answer. Like anything involving coverage, it’s worth thinking about what is best for you. You should at least compare rates — which means more than seeing which price tag’s number is bigger.
More important is determining which one gives you more for your money. The coverages included in insurance bundles may be less than what you’d get from purchasing them individually. They might not even have the same insurance company underwriting and servicing your policies, which could mean an inconsistent level of service. Whatever your decision, make sure it’s an informed one based on the pros and cons of bundling your insurance.
Bundle Your Insurance with American Family
When you have a lot to protect, it makes sense to bundle. Your American Family Insurance agent can help get you started. Connect with yours today and learn how much you can save bundling your home and auto insurance. You’ll get the protection you need and the peace of mind you deserve.
This article is for informational purposes only and includes information widely available through different sources.
*Customers who bundle auto and home insurance policies may save up to 23% on both policies together (as of July 2022). Discounts may vary by state, property, policy form and company underwriting the auto and/or home policy. Discounts may not apply to all coverages on an auto or property policy.
- What Is Umbrella Insurance?
Umbrella coverage offers additional financial protection over and above the personal liability limits of other currently active insurance policies you have. Think of umbrella insurance as a powerful financial shield that can help protect your savings and future earnings under certain situations.
Whether you’re found at fault for a multi-vehicle crash on the interstate, or a guest slips and falls down the icy steps outside your home — the added coverage in an umbrella policy can kick in and help cover any remaining costs should the liability limits on your underlying car or homeowners max out.
And umbrella insurance coverage doesn’t stop there. Liability lawsuits can come in many forms and the hefty financial judgements that frequently accompany them can also drain your savings. Today, let’s take a closer look at umbrella insurance to help you understand how this coverage can help protect your financial dreams and everything you’ve worked so hard for.
- Tax Identity Theft
You’ve probably heard the saying, “the early bird gets the worm.” But what does that mean for Americans who file their tax returns early?
To most of us, it usually means quicker refunds. But early filing could also mean significantly reducing your chances of falling victim to a growing trend in identity theft. It’s called tax return identity theft and it’s affecting Americans at an alarming rate. In fact, per the Taxpayer Advocate Service (TAS), an independent organization within the IRS, 5.2 million tax returns were tagged as fraudulent in 2020. Not to fret! We’ll help you understand tax related identity theft, the signs to look out for, and what to do if it happens to you.
What Is Tax Identity Theft?
Tax return identity theft is the act of filing a return using a stolen identity and taking the victim’s refund.
Equipped with three simple ingredients — a name, birthdate and Social Security number — the thief can commit tax fraud resulting in delayed or stolen refunds. And while a swiped refund may seem like a worst-case scenario, thieves may also use your stolen identity to obtain employment, an act with even greater impact.
When an identity thief uses your SSN for employment, all the income they earn under your identity must be reported. Meaning that when you go to file your taxes and the earned income numbers don’t match, the IRS will flag your return as suspicious. This can have significant financial impacts if taxes on the unclaimed earnings are imposed and can lead to prolonged stress with a request to audit your taxes.
The victims of fraudulent tax return identity theft can face stressful obstacles on their path to recovering from a stolen tax return and identity theft. One of the most significant steps in protecting your financial future from being compromised is education and understanding how this type of theft occurs, and what to do if you find yourself in this situation.
- Dog Liability Insurance for Homeowners
Whether you raised him from a pup or adopted her later in life, you don’t just view your dog as a pet: you consider them a member of your family. According to a survey by the American Pet Products Association, almost 90 million dogs are owned as pets in the United States — and while your dog offers a whole lot of love and laughter, they can also be a potential liability. Luckily, we offer dog-friendly homeowners insurance.
At American Family Insurance, we love pets and understand that they’re part of your household. That’s why we want to make sure you understand exactly how your dog affects your homeowners insurance and ensure that you have the proper protection in place not only for your home, but for your dog, too.
Is My Dog Covered by My Homeowners Insurance?
Whether or not your dog is covered by your homeowners insurance depends on who you have as an insurance provider. With American Family, your home, renters, manufactured home or condo policy will provide dog liability coverage — a form of financial protection against liability claims, including lawsuits for accidental bodily injury or damage to someone’s property. This includes paying for medical expenses if your dog injures someone or helping cover costs if your dog destroys someone else’s property.
It's important to note that your homeowners insurance won’t cover damage done by your pets to your own home, such as if your dog chews a hole in your sofa or scratches your doors or woodwork. And, keep in mind, your homeowners policy doesn’t cover injuries to you and the residents of your household. It only pays for injuries to others.
Need insurance for your dog? Consider pet insurance from an American Family Insurance agent to help you care for your pet through all stages of its life.
We also offer a special add-on pet coverage that provides up to $1,000 for veterinarian services, final expenses (like burial or disposal fees) or the cost to replace your dog if death occurs. This coverage is applicable after a covered property loss.
Does Homeowners Insurance Cover Dog Bites?
Whether you’re walking your dog through the park or at home playing in the yard, the liability portion of your homeowners insurance policy will help cover you if your dog bites someone or if they bite another dog.
Remember, a dog can bite out of fear, to protect their territory, to correct another dog’s behavior or for several other reasons. Because dog bites occur for a variety of reasons, keep these tips in mind to prevent your favorite family pet from biting:
- Keep your dog on a leash.
- Don’t leave your dog unattended with strangers or children.
- Make sure people respect your dog’s space.
- Spay or neuter your dog — this helps reduce their desire to roam and fight with other dogs. According to the National Canine Research Foundation, neutered dogs are three times less likely to bite.
- Socialize your dog. Introduce your dog to many people and situations so it isn’t nervous or frightened under normal social circumstances.
- Enroll your pooch in a dog training class. Not only does it help your pet learn better behaviors, but it teaches you to be a good pet owner, too.
And it’s not just bites that cause liability incidents — if your overly excited pup jumps on someone, knocks them over and breaks their wrist, you’ll be able to cover their medical expenses with the help of your liability coverage.
How Much Coverage Do I Need for My Dog?
Your homeowners policy has a liability “limit” that, in the event of a loss, will cover up to a certain dollar amount. Your liability limit is the amount available to cover anything from a dog bite to your neighbor slipping and falling on your icy steps. To understand your potential pet liability cost and the amount of coverage you need, think about the amount it may cost for medical expenses and if someone were to sue you. Sometimes this number is well into the six figures! For instance, if your liability amount is $300,000 but your dog bit someone and medical expenses and legal fees came to $500,000, you’ll be responsible to pay the remaining $200,000.
If you want to ensure you have adequate coverage in place, an umbrella policy is an added layer of protection which provides a much higher level of coverage to financially protect you from unexpected incidents with your dog.
Homeowners Insurance Dog Breed Restrictions
Unfortunately, not all dogs will meet the criteria to be included under a policy. While most dog breeds won’t impact your eligibility for homeowners coverage, there are some breeds that require additional considerations, such as whether your yard is fully and securely fenced. You must also provide certain documentation to be considered eligible, like evidence of up-to-date annual vaccines and proof that your dog has been spayed or neutered.
It’s also important to note that, depending on your dog’s prior history (e.g. history of biting, if they were trained or used as an attack or guard dog), they might be subject to a dangerous dog liability limit that reduces their liability coverage for losses to $25,000.
Your American Family Insurance agent can help you determine the specific requirements for insurability based on the breed of your dog.
At American Family, we want to help protect all the things that matter most to you. Connect with your agent and gain peace of mind that you have the right coverage in place for your four-legged friend.
This article is for informational purposes only and includes information widely available through different sources.
