A basic home insurance policy can cover a lot of dangers that face you and your home. From damages to the physical structure and claims of bodily injury liability on your property, home insurance offers a range of coverages. Basic home insurance policies don’t cover everything, however. There are some items and accidents that are excluded from home insurance. Thankfully, you can purchase endorsements to tailor your home insurance policy to your needs.
Common Types of Home Insurance Endorsements
Useful and common types of home insurance endorsements include:
Scheduled Personal Property Endorsements
Also known as policy floaters, you can purchase home insurance endorsements to cover certain items of your personal property. Items like jewelry, furs, art and electronics are generally limited in home insurance coverage. An endorsement can help cover your valuable belongings in case of damage or loss. For example, if you have an engagement ring worth $6,000 but your home insurance policy only covers it for $1,000, an endorsement can help cover the difference. Depreciation is not taken into account for a scheduled personal property endorsement. Instead, you will receive compensation for a fixed value amount as agreed on your policy.
Personal Injury Endorsement
Many homeowners don’t realize that the liability insurance on their home insurance policy does not cover personal injury. While it covers bodily injury and property damage, it does not cover non-physical injuries. A personal injury endorsement provides coverage for claims against you or a family member concerning false arrest, wrongful eviction or entry, invasion of privacy, slander, defamation and more.
An earthquake endorsement is only available through certain insurers and in certain locations. Most home insurance policies do not cover damages to your home or belongings caused by earthquakes, so an endorsement is sometimes available to cover this danger.
Water Backup Coverage
One of the other common exclusions on home insurance policies is damage caused by water. A basic home insurance policy may or may not cover water damage to your home or your belongings depending on the circumstances of the accident. Water backup coverage is a home insurance endorsement that covers water damage caused by sewage or sump pump backups. If your sewage system backs up and causes a burst and damages the interior of your home, for example, this endorsement can help cover the cost of repairs and replacements your home may suffer after the accident.
Also Read: Are There Items Not Covered by Home Insurance?
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