Are There Extra Risks You Need Coverage For With Your Homeowner's Insurance?

A homeowner's policy is precisely what you need when you own a house, but a typical policy might not cover everything you own and every potential risk you have. Do you want to have a plan that covers every threat and every asset you have? If so, you might want to consider adding some endorsements to your policy. If you're unsure about what this means, here are several things you should know.

The Basics of Endorsements

When you hear the term "endorsements" mentioned with insurance, it refers to add-ons to an existing policy. An endorsement lets you add protection for something specific that your general plan does not cover. Some people may not need or want any of these with their policies. Others may add just one or two, and some people add dozens of endorsements to their plans.

The Types of Endorsements You Should Add

The principal purpose of adding on extra protection is to cover risks you have that are not protected with your plan. For example, you might have assets inside your home that your plan doesn't fully cover. Jewelry is an ideal example of an asset that your policy probably does not cover completely. It might cover up to a certain amount, such as $1,000, for the jewelry you own, but it likely doesn't cover more than that. If your jewelry appraises at $5,000, you need an endorsement to fill in the gap.

You can also add protection for sewer leaks and clogs and inflation coverage. You can ask an agent to learn about all the other options available. Once you discover all the options, you can select the ones you need or want. You are not generally required to have endorsements, but you can add them if you want.

The Effects of Having Endorsements on Your Policy

Having endorsements on your insurance plan will affect you in two ways. The first is with the costs. You must pay extra for each one you add to your plan. Secondly, adding endorsements will affect you if you ever file a claim. You would receive more compensation from your claim if you had the right types of add-ons with your policy.

Reviewing your policy with a homeowner's insurance agent offers a way to find out what protection you need and the risks you have. Do you want to learn more about endorsements with home insurance? Call an agent today to get the answers you need.