When you purchase an insurance policy – home, auto, or anything else – and pay your premiums, it’s easy to assume you’re fully covered. Since coverage is determined by where you’re at in life at the time of purchase, you may be. Until you’re not.
Endorsements often provide additional or extra coverage that your standard insurance policy isn’t made for. It gives you the protection you need from an accident or storm you never saw coming.
Not everyone needs an endorsement all the time, but many homeowners and drivers need them from time to time.
Here’s what you need to know about insurance endorsements and when you might need one.
What is an Endorsement?
Endorsements, sometimes referred to as riders, are changes to your standard insurance policy, during the policy term. When you add an endorsement to your coverage, you’re not renewing your coverage, you’re simply modifying or adding to it.
These modifications can be additions, changes, exclusions, or to delete coverage. They’re most common for homeowners insurance but can also be applied to auto insurance, health insurance, and life insurance policies.
Some endorsements have a lower deductible or none at all for the specific coverage situation allowed. Your original deductible will still apply in other claim situations.
Endorsements usually last the remaining length of your current policy and can often be renewed with your policy. Some riders are only needed for a specific period of time and not for the entire policy.
Do You Need an Endorsement?
Whether or not you need riders or endorsements for your current insurance policy depends on your personal situation.
Here are some examples of times you may need to add an endorsement to your coverage:
- You own valuable art, jewelry, and other items that are not fully covered under your personal property coverage;
- You’re temporarily renting out a room in your home. Home insurance doesn’t cover “business” related needs and having a boarder requires extra liability and other coverage;
- You run a home day care and need business-related coverage that your home insurance doesn’t provide;
- You’ve recently gotten a divorce and need to remove your ex-spouse from your insurance policies before the policy renewal;
- You’ve purchased a brand new car and need extra coverage while it’s still new. This could be GAP coverage or extra replacement coverage in case it’s totaled;
- Your home will be vacant while it’s being renovated. Standard home insurance doesn’t always cover claims that occur during a vacancy or long absence.
You may not always need an endorsement on your insurance coverage, but there will be times when it makes sense.
Anytime you go through a life change, even a temporary one, give us a call. The situation may be something that needs an endorsement or rider so you’re fully covered for whatever life throws your way.
Think you may need an endorsement? Have questions about your insurance coverage? Contact Charlotte Insurance today.