All insurance is important insurance. But there’s something extra important about making sure your homeowners policy has what you need. It’s frustrating and inconvenient to have a disruption in your own home and having the right insurance coverage can help with that.
Did you know your policy may have some gaps in what your personalized coverage needs are? A homeowners policy is not one size fits all. Everyone’s needs are different, so making sure you have the right coverage at the right limits is crucial. There are certain perils that are not covered on an insurance policy, or are covered at low limits, that you may need to add to your policy as an endorsement.
What is an insurance endorsement?
An endorsement, sometimes called a rider, is an add-on or an amendment to your insurance policy that changes the terms, limits, or coverages of your original policy. Consider adding endorsements to your policy to customize for your needs.
Discover some common homeowners insurance endorsements below, and contact your agent if you think this coverage is something you should have.
1. Increased Ordinance or Law Coverage
What is ordinance or law in home insurance?
Ordinance or law insurance will help cover the cost to rebuild a home, after it’s been destroyed by a covered loss, to your local building code requirements. So, if part of your house burns down, and the city requires it be rebuilt a certain way, ordinance and law coverage would help pay to build it up to code, within the limits of the coverage.
Who needs ordinance or law coverage? Some ordinance or law coverage is included in Alfa’s homeowners policy, but someone who lives in an older home, like 50 or 60 years old, and in an area that already has strict building codes would really benefit from this increased coverage endorsement. People who live in historic districts, should talk to their agents about this endorsement.
2. Water & Sewer Backup Coverage
What is water backup coverage?
If your property is damaged by a clogged sewer line, backed-up drain or failed sump pump, water backup coverage, sometimes called sewer backup insurance, can help cover the repairs. If your home is molded because of water or sewer back up, this coverage may also cover the mold damage, up to your policy limits.
If you’re asking yourself, “Should I get water backup coverage?” or “How much water backup coverage do I need?," you probably know a sewer back-up on your property can be a devastating financial burden. You’d be very wise to add this coverage to your homeowners policy as a lot of standard homeowners policies do not automatically include it. It’s always a good idea to get the most insurance you can afford but talk to your agent about your risk and your premium to determine how much coverage you should get.
Does water backup coverage cover damage caused by sewage that enters from a septic tank? Yes, and most standard homeowners insurance policies don’t cover damage from a water backup, so make sure you talk to your agent about adding this as an endorsement. Imagine finding four inches of nasty sewage has flooded your basement. It’s not sanitary and is an expensive situation to remedy. Water and sewer backup coverage can help.
3. Home Systems Protection
Most home insurance will cover your appliances if they’re damaged by a covered peril, but what if they breakdown or malfunction because of electrical or mechanical reasons? This is where home systems protection coverage, also known as equipment breakdown coverage, can help.
What is home systems protection? This endorsement offers financial protection for your appliances, such as your refrigerator, dishwasher, computer, etc., if they break down due to an electrical or mechanical malfunction, up to your policy limits. While this doesn’t cover normal wear and tear on your items, Alfa’s home system protection is a great endorsement and is affordable at less than $75 a year, depending on your state.
4. Scheduled Personal Property Endorsement
If you have valuable pieces of jewelry or a surplus of pricey things, you will want to add a scheduled personal property endorsement to your policy or have a personal articles floater policy in force.
A scheduled personal property endorsement provides coverage for loss to property scheduled on the endorsement. This may include jewelry, furs, cameras, musical instruments, golf equipment, fine arts, stamps, coins, guns and more. This endorsement gives you increased coverage for your scheduled items when the standard personal property limits aren’t enough. For example, there is a policy limit on theft of jewelry in the standard homeowners policy so scheduling higher valued items would give you increased protection on these valuable items.
5. Increased Equipment
Increased Equipment Endorsements increases the limit on your homeowners policy for lawn equipment. A lot of people wonder if lawnmowers are covered under home insurance. Yes, lawnmowers are covered, within your coverage limits, under your personal property coverage on your homeowners policy. But if you’re someone with a lot of equipment, an expensive lawnmower, or specialty lawn care items, you may want to consider getting an increased equipment endorsement.
As you can see, a homeowners insurance policy can truly be customized for your needs. Talk to your agent about your current policy and discuss what endorsements you may need to be better covered. Call one of our local agents for a free quote today!
*This is not an insurance policy. It is intended only to provide a general description of Alfa Insurance and/or its product lines and services. An actual policy contains the specific details of the coverages, conditions, and exclusions.