In home insurance, endorsements are in actuality just specialized customizations to the homeowners insurance policy based on the needs of the insured. Some examples include endorsements to policy limits, broadening coverage, and liability changes.
Policy Limits Endorsements
- Inflation guard is just what you would imagine it is and it allows Section 1 limit increases annually through the life of the term.
- Coverage B (other structures) is limited to 10% of Coverage A (the dwelling), however this endorsement allows specific insurance on detached private structures to supplement Coverage B.
- Most of the special limits for certain types of personal property may be increased including: money from $200 to $1000; securities from $1,500 to $2,000; jewelry and furs from $1,500 to $5,000; etc.
- The limit of $500 on losses from credit card/forgery/counterfeit money may be increased to as much as $10,000.
- The limit of 10% of Coverage C (Coverage C is property at a secondary residence) can be raised by endorsement.
- The basic $1,000 limit for loss assessments may be increased to any higher amount and other locations may be added.
- The limit of 10% of Coverage A applying to ordinances or laws may be increased.
Section I (Property Insurance) Options to Broaden Coverage
- Loss settlement on personal property is by default based on actual cash value, but by this endorsement it can be changed to replacement cost.
- A “special coverage” endorsement can be added to the Condo Unit Owners Policy to provide “open peril” coverage to the building and personal property.
- Certain classes of property can be be added to the schedule with specific amounts of insurance and thus not subject to the policy deductible.
- Theft coverage may be extended to cover when the residence is rented to others.
- Structures not covered under Coverage B may be specifically included. (Similar to #2 above in the limit section.)
- Students away at school may be covered by endorsement
- An assisted living care facility endorsement may be added to provide coverage while a relative is in such a facility.
- The HO-4 policy may be endorsed to provide “open peril” coverage for personal property. (Open perils cover all the causes of loss not specifically excluded in the policy.)
- A residence in the name of a trust is eligible for coverage through endorsement.
- Physical damage to certain owned golf carts may be added. Though coverage is based on actual cash value.
- HO-8 (Modified Coverage Form) may be broadened to include off-premises theft losses, subject to a $1,000 limit.
Section II (Liability Insurance) Endorsement Options
- Coverage for certain excluded watercraft can be added.
- Two endorsements are available to cover home based businesses. These are Permitted Incidental Occupancies and Home Business Insurance Coverage.
- Coverage may be included for structures at the residence premises, and for 1-4 family dwellings at other locations, which are rented to others.
- Farms are not eligible for home insurance generally, but through endorsement, incidental farming operations at the residence premises and even farm premises at other locations may be included.
- Personal injury liability adds coverage for claims against the insured for false arrest, detention or imprisonment, malicious prosecution, libel, slander, invasion of privacy, wrongful eviction and wrongful entry.