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Home Owner Insurance Endorsements

Endorsements  or Floaters as they are sometimes known are additional insurance covers you can buy to add to your home owners insurance policy. Endorsements cover specific risks that are not included on your standard policy and your personal circumstances will dictate what you actually need. We hope you will find the list below to be useful but if you need any assistance always seek professional help from your agent. 

  • Scheduled Endorsement - most insurance companies have established certain reimbursement limits to what you can claim for on personal items. As a result, valuable or precious items like jewellery, antiques and silverware may not be adequately covered under your standard home owner insurance policy. Each Scheduled Endorsement covers a specified item listed along with its value. This will then be the amount of pay out in the event of a claim.   A  certain amount of extended coverage is also possible apart from normal perils (i.e. stone from an engagement ring is lost due to a loose setting). Much like Guaranteed Contents, depreciation of value is not a issue. Having scheduled items can  can increase your home owner insurance premiums significantly.

  • Blanket Endorsement - Instead of scheduling a list of individual items, a single Blanket Endorsement will cover a wide range of your personal belongings. It "blankets" its cover over what your insurance company offers to cover: jewellery, items of art, golf equipment  etc.

  • Earthquake - earthquake Insurance may be added as an endorsement. It protects against damage incurred from an earthquake, tremors and aftershocks. It is usually offered in the form of a deductible, approx 10% of your home's insurance (your home is insured for $200,000: you pay $20,000).

  • Ordinance and Law - all homes are usually built  in line with construction laws and codes in force at the time. Over the years, these  laws and codes may change, new features may be introduced to make homes safer, better quality ,materials may be required. If your old home where to suffer a large amount of damage, a standard policy would not help you to reinstate your home up to the latest code values. The Ordinance and Law endorsement extends coverage for the additional costs of reconstructing your home under current codes.

  • Personal Injury - this is a form of extended liability insurance coverage. Your standard policy covers "normal," more physical injuries (i.e. your guest breaks his leg whilst attending a party at your home), Personal Injury helps protect you from situations such as;  lawsuits of Libel, Slander and Defamation of Character. Check your policy wording as this may already be included.

  • Income Property - your standard policy's liability coverage doesn't include structures you rent for personal income. You may rent out part of your Home  and you will need a separate endorsement " Income Property" to help cover you. Although your tenant may have his/her own Renter's Insurance policy, the  premises liability may still fall on you and as such you need to insure against this eventuality.

  • Guaranteed Dwelling - the market value of your home is calculated by many factors including the land it actually sits upon, the quality of local schools, local social issues and the desirability of the neighborhood itself Standard home owner insurance does not cover this market value, it only covers your home's replacement value (how much it would cost to rebuild). With Guaranteed Dwelling, your insurer will cover the cost of rebuilding your home even if it is in  excess of your policy limit. For example, your home is "worth" $280,000 on the market, but would only cost $230,000 to rebuild. With Guaranteed Dwelling, your insurer would pay the extra $50,000 if it is necessary to do so.

  • Guaranteed Contents - depreciation of value is common with personal items. Things like HI-FI, televisions. electrical goods and furniture  lose their value as time goes by, under a standard home owner policy, your insurer would reimburse you following a valid claim minus the depreciation ( a 3 year old item would have 3 years depreciation    ( this is called actual cash value). With Guaranteed Contents, you're guaranteed replacement regardless of depreciation. You would be reimbursed with the amount you paid three years ago or have it replaced with a comparable item.

  • Other Structures - Structures such as fences, tool sheds and benches are usually covered by a 10% limit from your standard home owner policy (i.e. your home is insured for $200,000 so structures are covered for $20,000). However, this may not always be adequate for larger or more elaborate structures.   Other Structures  endorsement increases the limit to help cover costs in the event of loss.

  • Sewer and Drains - damage to your finished or storage basement is not covered by standard home owner  insurance in the event of faulty sewers  or drains. It is also  not covered by flood Insurance.  Sewers and Drains will help cover losses from such an event. Limits do apply so always make a check. 

  • Inflation Guard - Building costs increase with inflation like everything else. The amount of cover under your home owner insurance policy will remain the same unless you adjust it your self or you purchase the Inflation guard endorsement.  This will then adjust your sum insured in line with national statistics.