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5 Homeowners Coverages You May Not Know You Need

home with matching detached garage.

As a homeowner you may have exposures that aren’t covered by a standard homeowners policy.  There may be risks in your home you  haven’t considered. Did you know you can add additional coverages though an endorsement?  An endorsement is essentially a rider  purchased separately and tacked on to your homeowner’s coverage as a policy extension.   There are a number of extra coverage options you can add on to your policy. 

Here are five endorsements for your homeowners policy that you should be aware of, according to the insurance trade publication National Underwriter.

  1. ‘Additional Insured Residence Premises’

    This endorsement is specifically for people who have an ownership interest in a property but don’t live there. This could come in handy for you if you are helping an adult child who is purchasing a home.  You can protect your part of the investment should the house be damaged or destroyed in a calamity.

     

  2. ‘Other Members of Your Household’

    This coverage is important as more people cohabitate. You may consider your boyfriend or girlfriend a member of your household, but, if he or she lives in your house, the insurance company does not consider them insured .  An additional insured cannot be a guest, household employee, tenant or boarder. Whoever you intend to cover must be identified by name on the endorsement.

     

  3. ‘Other Structures Increased Limits’

    Maybe you’ve built a new man cave. A small cottage in the back yard outfitted with a giant plasma TV, nice sound system and bar. Since it’s a detached structure, your homeowner’s policy will not likely cover the entirety of the loss, should it burn down or suffer some other damage or theft.

    Besides sheds, “other structures” can also include detached garages, gazebos, patios, barbeque pits, swing sets and other items in your backyard. 

    Under the typical homeowner’s policy, other structures are covered at 10% of the policy limits. So if your home is insured for $200,000, your other structures would be insured for 10% of that – $20,000. 

    If you’ve got pricey stuff in your backyard, you may want extra coverage!

     

  4. ‘Mechanical Breakdown’

    This homeowners endorsement was only issued for the first time in 2014.   It covers the mechanical failure of household appliances like: central air conditioning, central vacuums, chairlifts and elevators, electric vehicle charging stations, heating systems, including water heaters, home automation and security systems, saunas, hot tubs, therapeutic baths, swimming pool pumps and filtration systems, stoves, wall ovens, refrigerators, well–water pumps, and sump pumps. This can be a valuable coverage if a major system fails but you should consult with your agent to understand the impact of claims to your future premiums.

     

  5. ‘Water Back–up, Sump Discharge/Overflow’

    While your unendorsed policy won’t cover damage from a sump pump back–up or overflow or the cost of a sump pump that breaks down, this endorsement will cover that.

    We understand insurance can be a complicated. Contact us and discuss your coverage options with  your agent

 

 

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