Before we talk about these endorsements, let's explain what it means. In insurance, an endorsement can be an exclusion, addition, or any other type of change to the original terms of your policy that is a legally binding amendment to the insurance contract. They may be issued mid-term, at purchase, or at renewal.
So what's all the fuss about endorsements? A few of our carriers are now offering new types of enhancements and we're excited to share them with you.
The new endorsements that you should consider are:
- New Car Replacement
- Service Line Coverage
- Cyber Protection
If you want to learn more information about each endorsement, keep reading.
New Car Replacement
This optional coverage protects your investment in a new car. The protection kicks in if you find yourself in an accident that results in repair costs that are higher than the cash value of your car. As you probably know, the value of your car depreciates as soon as you drive it off the dealership lot as a new owner. With New Car Replacement, losses are paid without considering depreciation in the value of the car as is standard with a typical auto policy.
FAQs
What if someone hits me?
This coverage will protect you no matter who is at fault.
What types of cars qualify?
For the car to qualify, you must be the first, original owner. Following the purchase of your new car, you have 30 days to add this coverage to your policy. If you are still unsure if your car qualifies, consult with your agent.
How long does the coverage last?
It depends on the insurance company, but it ranges from one year to the first four consecutive years that you own the car. If you discontinue the coverage, it is null and cannot be added back.
How much will it cost?
The costs vary based on multiple factors, so be sure to call your agent if this is something that makes sense for you.
Service Line Coverage
This coverage is an optional addition to your policy that fills a gap in standard homeowners' policies. Between water, waste, drainage, irrigation, heating, compressed air, and communications lines, homeowners rely more on service lines than ever before. Did you know that service lines are not covered under standard policies? Did you know that it's your responsibility to repair or replace damaged lines? This can cost up to $7,000 depending on what lines are damaged. That's where Service Line Coverage comes in.
FAQs
What is covered?
Damage to a covered service line that is caused by collapse (not including a sinkhole or subsidence collapse), electrical and mechanical pressure system breakdown, animals, plants and their roots, excavation, freeze, rust, deterioration, and normal wear.
Is there a waiting period for coverage?
Some insurance companies require a 30-day waiting period from the inception of coverage while others do not.
What are the criteria?
The service lines must be located at the insured home, be located underground, be owned or under your responsibility, and provide active service to your home that is defined in the endorsement.
Cyber Protection
Cyber is another optional coverage that can be added to your home policy. It protects families from cyber losses, compromised data, and damaged software/operating systems.
FAQs
What type of cybercrime is covered?
This type of coverage applies to cybercrime, data recovery and system restoration, cyberbullying, cyber extortion, breach notification costs, and cyber protection legal expenses and damages reimbursement.
What devices are covered?
Any device that is connected to the internet.
Is there a waiting period for coverage?
No waiting period.
Conclusion
It's really important to remember that not all endorsements are created equally, so you should contact our agency to help navigate these new offerings. We also want to note that not all carriers offer all of these products at this time. So if you're interested, we recommend calling us at 717-235-6891 and speaking with one of our personal lines agents.