From theft of your personal property to ruptured sewer lines, there are many risks involved in owning a home. In some cases, a standard homeowners insurance policy falls short of the protection you need. Enhancement endorsements give you the opportunity to assess what level of risk you're comfortable with, so you can increase your coverage in areas where you want greater protection.
From theft of your personal property to ruptured sewer lines, there are many risks involved in owning a home. In some cases, a standard homeowners insurance policy falls short of the protection you need. Enhancement endorsements give you the opportunity to assess what level of risk you're comfortable with, so you can increase your coverage in areas where you want greater protection. Visit our guide to homeowners insurance to learn what protection it provides.
What is an insurance enhancement endorsement?
Enhancement endorsements broaden the coverage of typical homeowners insurance policies, and they're extremely beneficial to policyholders because they provide additional coverage of risks that the base policy may exclude. Insurance companies offer a wide variety of enhancement endorsements, ranging in both price and level of coverage.
Additionally, there might be separate insurance policies offered to cover issues not included in your base policy—like scheduled personal property. However, it's often cheaper to add an enhancement than it is to have a specific policy or to increase a specific limit. Ultimately, enhancement endorsements provide greater protection, and they're more cost effective than purchasing a separate insurance policy.
Why are enhancement endorsements valuable?
Every homeowner has unique coverage needs and risks. While you're likely to have some type of claim in your lifetime, it's hard to predict what it will be and the extent of the damage. Enhancement endorsements offer a package of multiple coverages. Because an enhancement endorsement broadens the base policy, having it on your insuance plan helps put you in a better position to have coverage at the time of a claim. Another benefit is you get a lot of nice coverages all built in to one endorsement, versus having to pick one-by-one and make sure everything you need and want is actually chosen. An enhancement endorsemet will also cost less than selecting coverages ala carte. Essentially, an enhancement endorsement is a way to broaden your protection in one motion. Insurance companies also offer multiple levels of enhancement endorsement options so you can still customize which level of coverage you want.
Are enhancement endorsements necessary?
A standard homeowners policy will provide some common coverages but to expand your protection to more claims scenarios you'd want to consider adding an endorsement package. This addition not only increases the amount of coverage you have for certain types of claims but it could add coverage for damage that you wouldn't otherwise be covered for without the enhancement.
Here are a few enhancement endorsements to consider.
Sewer Backup
Most standard homeowners insurance policies include coverage for water damage. However, this coverage is typically limited to water damage resulting from sources within the home like burst pipes. Coverage often does not extend to sump pump overflows or sewer backups. According to the Insurance Information Institute, sewer lines across the country are around 30 years old on average. Aging systems are at increased risk for backup, and a sewer backup endorsement offers valuable protection at an affordable rate.
Personal Property
Expensive valuables like jewelry, collectibles, electronics and guns are usually covered under a standard homeowners insurance policy, but coverage can be limited. For many homeowners, the total value of their expensive possessions exceeds the amount covered under the base policy. Adding a personal property enhancement endorsement increases the limits on your insurance, so that your valuables are protected in the event of a covered incident or theft.
Personal Cyber
Data collected by the FBI shows that cyber crime is a bigger threat than ever before. In fact, reports submitted to the Internet Crime Complaint Center rose from 301,580 in 2017 to nearly 850,000 in 2021. In 2021, victims reported losing nearly $7 billion to cyber attacks. Insurance carriers have recognized the rising threat to policyholders, and they're now offering personal cyber enhancement endorsements. This endorsement offers protection from losses pertaining to cyber crime, including system recovery and restoration.
Underground Service Line
Many homeowners don't realize until it's too late that damage to underground power, sewer and water lines is not covered under their standard insurance policy. Since repair or replacement of underground service lines requires excavation, prices are likely to climb into the thousands. Opting for an underground service line enhancement endorsement can protect you from footing the bill for these costly repairs.
Expand Your Coverage
Ultimately, enhancement endorsements increase your level of protection. An endorsement may add coverage for something that was not included in the base plan like sewer and drain backups, or it may increase the limits on your coverage. They can be added to an insurance policy at the time of purchase or mid-term
Plus, as insurance carriers recognize the need for additional coverage options, they're also expanding what endorsements are available to policyholders. Personal cyber and underground service line coverage are two of the newest options available. If you haven't reviewed your policy in a while, they likely weren't offered the last time you bought or renewed your insurance policy. To learn more about increasing your level of protection through enhancement endorsements, reach out to a Keller-Brown Insurance agent.