Why are endorsements important to insurance? Why do clients need endorsements? What are the benefits of having endorsements? Endorsements are important to insurance policies because they address issues or items that are not in the original insurance policy. Adding an endorsement to your existing insurance contract means adding or making adjustments to the coverage that you have. Endorsements help broaden your insurance coverage. This will help make sure all your assets are covered.
There are some endorsements that Indiana homeowners are missing out on. These 5 endorsements can help you protect your homes in ways that you didn’t know you needed coverage for. These endorsements can save your homes from damage and save you thousands of dollars. Listed below are some of the endorsements you might be missing out on:
- Guaranteed Replacement of Dwelling: Guaranteed replacement cost is a homeowners insurance endorsement that ensures you’ll be paid the full amount to rebuild your home after a disaster, regardless of how much it costs. That means if your house is destroyed by a fire or severe storm, your insurance will pay to rebuild it to the way it was before the disaster. You might be thinking, what if the cost is over my coverage limit? This endorsement will cover the full amount even if the cost is double or triple your policy’s dwelling coverage limit.
- Roofing and Sighting: This is the number one insurance claim that our agency sees from homeowners. This endorsement covers the damage that wind and hail can have on the roofing of your home. It fully protects your home from storms and the damage that can come from them.
- Water and Sewer Backup: Blockages in your home’s sewer systems can cause backups. Your health can be affected greatly if a sewage backup occurs in your home. Most people underinsured this endorsement because they do not think they need it or they are unaware of how much it could cost them. The repairs of sewer backup can be up to 10,000 dollars in damages. Sewage backups can contaminate your drinking water, and they can also pollute surface water. Making sure you have water and sewage endorsement on your insurance policy will help insure your personal health and your home.
- Cyber Coverage: When people hear cyber coverage, they just think of the internet, but cyber coverage insures a lot more than just the internet. This endorsement covers cyberattacks on a company which can cause severe financial damage to a company if not insured properly. Cyber coverage can provide a network of professionals and resources to help cover the aftermath of a data breach in your server. Cyber coverage also protects against liability claims if either of these two things were to happen.
- Review Inflation: Reviewing inflation and dwelling coverage can help you keep up with how much insurance a home keeps up with inflation and reviewing costs. Reviewing inflation rates allows you to factor in inflation when setting goals, such as saving for retirement, education, or major purchases. By reviewing inflation, you can assess whether your investment portfolio is keeping pace with or outperforming inflation. It enables you to make informed decisions about asset allocation, investment vehicles, and strategies that have the potential to generate returns that outpace inflation and preserve your purchasing power over time.
Endorsements in an insurance policy can save you money, time, and emotions. Bonuses in your endorsements can increase your deductible from 2500 to 5000. Not submitting a claim under 5000 can help you increase your deductible because of underwriting action that has to be taken.
For the best coverage, you do not want to submit 2 claims on record in 5 years or you run the risk of not being renewed for your homeowners insurance. These endorsements help protect you from that. Insurance and endorsements are here to help you cover what you can’t pay out of pocket.