• Lindsey Stortz

Optional Coverage for Homeowners Insurance

Updated: May 7

Below are optional endorsements offered by insurance carriers to enhance your homeowners insurance and better protect your family, home and other assets. Please speak with your insurance agent regarding your individual insurance policy as there can be differences between company endorsements and policy forms.

Replacement Cost on Contents Endorsement

Actual Cash Value takes depreciation into consideration whereas Replacement Cost does not. Replacement Cost will fully replace your personal property if it is damaged or destroyed by a covered loss. Contents or Personal Property include televisions, furniture, clothing, and more – a simple way to think of contents is, if you were to tip your home over, what would fall out? Please note, items such as jewelry, furs, fine arts, guns, silverware and musical instruments need to be scheduled for full coverage (see next endorsement).

For example, if your couch is destroyed due to a pipe burst, Replacement Cost will pay the full cost to replace it, whether you purchased the couch a month ago or five years ago. You will be compensated to replace your couch with a new one of “like, kind and quality”.

Scheduled Personal Property Endorsement

Most homeowners policies have limitations on jewelry, furs, fine arts, guns, silverware, musical instruments and more. Limitations include theft and mysterious disappearance. When you schedule an item, it is itemized and valued on an individual basis and no deductible is applied. Often, you will need to provide a bill of sale or appraisal to the carrier showing the item’s value and description.

For example, if you are on vacation and you lose your engagement ring that has been scheduled, you will have coverage. If your engagement ring was not scheduled, you would not have coverage.

Guaranteed Replacement Cost Endorsement:

The policy will pay the full cost of replacing the home, even if the amount exceeds the dwelling coverage limit, as long as the home is insured to value.

Inflation Guard Endorsement

This makes it possible for the insurance company to increase your dwelling coverage limit without obtaining permission every renewal – this is a % of the dwelling coverage limit. Being the cost to rebuild your home increases overtime (materials, cost of labor, etc.), the inflation guard protects against loss of the difference.

Blanket Endorsement

Blanket coverage makes it possible to insure multiple properties or items (jewelry, etc.) under one limit.

Water Back Up and Sump Overflow Endorsement

In the event water backs up through a sewer or drain off premises.

Example: water backs up into your basement from a drain.

Increased Limits on Money and Securities

Increases the coverage limit on money and securities lost due to a covered loss.

Liability Extension Endorsement

Liability extends to another residence owned by or rented to the named insured.

For example, a summer home in The Hamptons or a property you are renting temporarily.

Increased Other Structures Endorsement

Increased limit for more elaborate or larger structures detached from the home. Other Structures include a pool house, gazebo, shed and more – the policy limit is usually 10% of the dwelling coverage limit.

Personal Injury Endorsement

Liability coverage extends to the insured, spouse and children in the event they are sued for defamation of character, slander, and/or libel.

Home Business Endorsement

Coverage is extended if you own and run a business in your home.

Identity Recovery Endorsement

If your personal identity is stolen, coverage will extend to recover control – this includes attorney fees.

Ordinance and Law Endorsement

Coverage is extended for extra costs required to bring your home to compliance under current code.

Off Premises Theft Endorsement

Theft protection is extended for contents stolen away from the premises, subject to the deductible.

For example, your golf clubs are stolen from your car.

Watercraft Endorsement

This type of policy extends medical payments and personal liability on outboard motor boats and small sailboats.

Personal Umbrella Liability Endorsement

Additional layer of liability protection that extends to the insured’s home(s), auto(s), boat(s), and other assets owned under the insured's name. This coverage does not extend to assets owned under a business entity, etc.

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