You can purchase optional coverage to add to your policy. They are called endorsements or sometimes “floaters”. Some common endorsements:
Inflation Guard Endorsement
Allows your insurance company to automatically change your policy limit. This is done to cover the replacement cost of your home that is increasing with inflation to maintain your coverage at 80% of replacement cost. Not all companies offer this endorsement.
Guaranteed Dwelling Endorsement
Covers the market value of your home. Often the market value is higher than the replacement cost.
Guaranteed Contents Endorsement
Covers the cost to replace a personal item even though you might have owned it for a number of years and it has depreciated in value.
Other Structures Endorsement
Covers larger more elaborate structures (gazebos, guest house etc.) that would exceed the standard 10% limit.
Sewer and Drains Endorsement
Covers damage to your finished or storage basement in the event of faulty sewer lines or drains. This is not covered by standard policies.
Scheduled Personal Endorsement
Sometimes called a “personal article floater” covers possessions such as jewelry, furs, stamps, coins, guns, computers, antiques, and other items that may exceed normal limits in a standard policy. Each item is valued, itemized and described. Excluded perils are listed. There is usually no deductible applied to this coverage.
Blanket Endorsement
Is used in place of a scheduled personal endorsement. There is no itemizing but the Blanket Endorsement covers what the standard policy does not cover such as jewelry, coins, etc..
Increased Limits on Money and Securities
Increases the coverage on money, bank notes, securities, deeds, etc..
Secondary Residence Premises Endorsement
Applies to a secondary residence.
Home Daycare Endorsement
Covers any liability claims if you operate a daycare in your home.
Business Pursuits Endorsement
Extends liability coverage if you operate an at-home sales business or other small “franchised” ventures such as Tupperware and Avon. It does not extend coverage if you own the business.
Home Business Endorsement
Extends liability coverage in your home if you own and operate a business in your home. It must be a small business.
Personal Injury Endorsement
Extends liability coverage to you if you are sued for Libel, Slander, and Defamation of Character. This is covered in umbrella policies and may not be needed.
Income Property Endorsement
Extends liability coverage to areas of your home or premise that you rent.
Ordinance and Law Endorsement
Extends coverage for additional costs of reconstructing your home under current codes. This usually applies to older homes.
Watercraft Endorsement
Extends personal liability and medical payments on small sailboats and outboard motor boats.
Theft Coverage Protection Endorsement
Extends theft protection to the contents of your motor vehicle, trailer or watercraft without proof of forced entry.
Credit Card Forgery and Depositors Forgery Coverage Endorsement covers
Covers the loss, theft or unauthorized use of credit cards. It also covers forgery of any check, draft, promissory note etc.. This endorsement has certain exceptions. No Deductible applies.
Flood Insurance
Should be required by your lender if your home is located in a flood plain. Depending on where you live you may qualify for flood insurance through the National Flood Insurance Program (NFIP). They can be reached at 1-800-638-6620. Flood insurance covers direct physical damage to the main home and its foundation and erosion damage. It does not cover structures extended over water and structures other than buildings such as pools and gazebos.
Earthquake Insurance Endorsement
Is available through most insurance companies. It is regarded as catastrophic coverage and usually has a deductible of 10% of the home’s value.
Windstorm Coverage
Covers windstorm and hail damage if it is excluded from your standard policy. It usually depends on where you live.