4 Forgotten Homeowner Insurance Endorsements | How to Insurance | 057
Hi, I’m Peter!
Welcome to HOW TO INSURANCE
Helping YOU understand insurance,
building CONFIDENCE for your future!
This year, we have all been “home” more than usual and we all realize how important it is to maintain our home and protect it and ourselves from damage and loss.
Your home is your castle.
So, it better be properly insured.
Today we are talking about:
4 Forgotten Homeowner Insurance Endorsements
If you own a home, it is likely the most valuable asset you have.
Property values continue to rise and it only makes sense that you properly insure the highest-priced item you own!
If your home is damaged, vandalized, or destroyed, you want your insurance to repair and replace it, with minimal cost to you.
In addition, there is a lot of financial liability that comes with homeownership. Something on your property could potentially damage something or someone else...and those costs could be high. Like, hundreds of thousands of dollars!
Lawsuits do happen and when they do, the number of zeros on that dollar amount will make you a little sick.
So, let’s make sure you are properly insured.
If you haven’t checked on these homeowner endorsements lately, contact your insurance broker ASAP and look into it!
4 Forgotten Homeowner Insurance Endorsements:
1. Replacement Cost (not cash value)
This is a simple box to be checked or missed when your homeowner policy is issued. You might see a huge figure like $300,000 for personal belongings on your policy. However, you definitely want the “replacement cost” box to be checked!
Without the “replacement cost” endorsement, your insurance is only required to give you “actual cash value” for your lost item.
Let’s say that someone broke into your home and stole your property. You may have spent $2,000 for that big screen tv years ago, but today, on the resale market, it’s only worth $500. So, with the “replacement cost” endorsement your homeowner policy will just pay $500 to replace it.
What are you going to do with ¼ of a new TV? :)
What you want is… you want the insurance to pay whatever it takes to actually replace the item damaged or stolen.
It costs a little more in premium, but it’s definitely worth it to have the “replacement cost” endorsement on your policy!
2. High Liability Limits
Your liability coverage is there in case someone sues you or is physically hurt on your property.
You have options of $100,000, $200,000, $300,000, $400,000, or $500,000 for liability limits.
Now, it might seem like the half a million dollar coverage would cost 5x as much as $100k… but it doesn’t! It’s literally just a few extra dollars a month or maybe a year!
Seriously, adding extra liability coverage is one of the least expensive things to do… while being one of the wisest things to do.
So, at the max of $500,000 liability coverage.
Then get a $1 million Umbrella policy for your home and autos, just to have complete protection from lawsuits and liability judgments against you.
3. Water Back-Up Coverage
Flood insurance is NOT included in a normal homeowner’s policy.
Any damage from water that backs up from the drains or sewers or anywhere outside your property is also NOT covered.
You need to add this endorsement.
It might cost about $50/year to add, but it’s well worth it and a wise investment to protect your house from water damage.
4. Business at Home Coverage
So many Americans are now working from home.
Are you working from home?
Do you perform “business activities” at your house?
If damage or an insurance claim happened on your property that came from your business activities at home, then you are NOT covered unless you have this endorsement.
If someone came to your house to meet for business or drop something off for work and they trip and fall, get injured, and come after you to pay for their damages - you need to add this business endorsement onto your homeowner’s policy to be covered.
Do you have a part-time, side hustle business you run out of your home?
Make sure to add this business endorsement onto your homeowner’s policy to be covered for potential claims and liability.
Next Steps:
Contact your trusted independent insurance broker to review your policy.
Add the above endorsements to your policy.
Build Confidence for your Future!
I look forward to hearing from you!
At Apple Insurance Solutions,
We all want to protect what matters most to us in life,
but finding the right insurance can be confusing.
So I make it simple.
As Your Insurance Broker,
All your insurance is covered in one relationship,
saving you time and
building confidence for your future.
If this was helpful to you, please:
“Like and Share” this post
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Contact me at peter@appleinsurancesolutions.com
Also, keep in mind, that as Your Insurance Broker,
I offer insurance for auto, home, life, health, medicare, umbrella, and business… when you work with me, all your insurance needs... are in one relationship.
Thank you for reading HOW TO INSURANCE
Helping YOU understand insurance,
building CONFIDENCE for your future!
PETER D JOHNSEN
Insurance Broker | Apple Insurance Solutions
360.818.4865 OR/WA 818.620.8171 CA
Auto | Home | Life | Health | Medicare | Umbrella
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