What Are Endorsements, and Do I Have Them On My Policy?

Posted on Homeowners Insurance January 8, 2019

Endorsements-home insurance premium-business interruption claim_bulldog adjusters_best public adjuster_loss of income claimIf you’ve spent any time recently reviewing your insurance, you may be wondering what are endorsements? The simple answer to the question, what are endorsements is they are a standard part of every type of insurance policy.

You may also ask yourself what are endorsements if you have been purchasing new insurance, changing the coverage you have or dealing with a claim. Although the basic answer to the question what are endorsements is pretty simple, endorsements can be anything but simple. And whether you have the right endorsements on your policy can determine whether you have the coverage needed for a claim.

What are endorsements and what is the purpose of them?

If you’re wondering what are endorsements and what are they used for, the answer is straightforward. An endorsement is added to a policy or removed from a policy to change coverage. There are times when your insurance company may add an endorsement to your home insurance policy. Also, an endorsement may be added when you request a change to your insurance policy.

Simply put, the answer to what are endorsements is they are changes that are added to a policy that affect coverage. They can be added to any insurance policy, including homeowners, condo owners, renters, and even automobile insurance.

What are endorsements and how long do they last?

An endorsement that is added to your insurance policy becomes part of the insurance contract. So, if you are asking yourself what are endorsements and how long do they last, the answer is as long as your policy is active. Some endorsements are part of the policy at the time it is issued. Other times endorsements may be added to the policy after it is issued. In either case, the endorsement lasts if the policy is active.

What are endorsements with specific terms

You may be wondering what are endorsements with specific terms. There are cases where an endorsement may be issued with a specific or limited term. In cases with limited term endorsements, the endorsement may have an effective period that doesn’t coincide with the policy term. So, if you think what are endorsements with limited terms, you may have such an endorsement on your policy.

For example, a  limited term endorsement may be used if you are completing renovations. Your typical homeowner policy may not cover the renovation work and materials, but an endorsement may be added with a limited term to include the renovation. Such an endorsement may be useful for one month or three months. So, if you are asking what are endorsements with specific terms, know those are typically used for special situations, most commonly for temporary renovations. 

What are endorsements and the most common types?

Most commonly there are two main types of endorsements. The first type is an endorsement that replaces the previous policy contract. For example, let’s say you get a divorce and become the sole legal owner of your home. You may wish to have your spouse’s name removed from the insurance policy for the house. The answer to the question, what are endorsements, in this case, will be a policy change that is issued by your insurance company and replaces the previous policy. The endorsement will show only your name as the insured party under the home insurance. It will also indicate that it supersedes any previously issued endorsements.

Another type of insurance endorsement is one that removes or adds coverage to the policy. This type of endorsement may be added to the policy either during the term or at renewal. So, the answer to the question what are endorsements and do they add coverage is sometimes. Endorsements can also limit coverage. 

What are endorsements and their basics?

An insurance endorsement has some basic components as follows:

  • Adds coverage to an insurance policy
  • Removes or deletes coverage
  • Adds, removes or amends locations or property covered under an insurance policy
  • An endorsement may be added during a policy term
  • An endorsement may result in a premium change for the policy

What are endorsements best practices?

Just like with any insurance document, the best practice is to review all endorsements carefully. Be sure to inform yourself about your insurance policy endorsements. For example, let’s say you contact your auto insurance company to add emergency roadside service to your policy. About one week later you get an endorsement in the mail from your insurance company, you don’t have to ask at this point what are endorsements, but you should certainly check to make sure the correct change was made.

Also, since adding endorsements can affect the premium on your policy, be sure to review the premium charges when reviewing your endorsements.

What are endorsements and should I add them to my policy?

Some endorsements may be useful to homeowners. Some insurance companies may make these endorsements available to homeowners at the time a policy is purchased. If you are wondering what are endorsements, and should I add them to my policy? The answer is maybe. Here are a few common endorsements that may be useful for homeowners.

Sewer backup coverage:

A sewer backup endorsement extends coverage for water damage resulting from the back up of sewer pipes into the home. Water damage can be costly, so the endorsement can be useful in some cases. 

Scheduled property:

A scheduled personal property endorsement is extra coverage for highly valuable items that may not be covered under your typical policy. This endorsement extends coverage for these items according to their appraised value.

Home business coverage:

Home businesses are becoming more common, and most homeowner policies exclude coverage for business property. However, if you’re wondering what are endorsements for my home business, this endorsement may be just what you need. The endorsement provides coverage for business personal property.

Boat endorsement:

Wondering what are endorsements that cover your boat? A boat endorsement may be just the answer for you. Typical homeowner policies have minimal coverage when it comes to watercraft, so talk to your insurance professional about adding a boat endorsement to your policy.

What are endorsements and do I need one?

As discussed, endorsements change, remove or add coverage to your insurance policy. If you have needs for special coverage such as running a home business or valuable personal property such as antiques, you may need to make an endorsement to your policy. Contact your insurance professional for help.

Are you having a problem with an endorsement involving a claim? Contact Bulldog Adjusters today.

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