When people think of add-ons, they might think of overpriced bells and whistles they don’t need. Clients building their auto and home insurance policies sometimes fall into a similar line of thinking. However, additions are not always bad, especially when it comes to insurance. Let’s talk about some small endorsements that make a big impact.
Why are Insurance Endorsements Important?
An insurance endorsement is an addition to your insurance policy that changes the original policy’s coverage or terms. Endorsements can add coverage, modify the original policy, or remove coverage that was previously included. They allow policyholders the ability to tailor their insurance coverage to meet their needs and provide peace of mind. Next, let’s explore some common insurance endorsements that clients have found useful.
Common Insurance Endorsements
- Fungi, Wet or Dry Rot Bacteria Coverage – Protects against loss caused by fungi, wet or dry rot, or bacteria damage that results from an event covered by the policy (ex: sewer back-up).
- Ordinance or Law – Offers additional coverage on top of the 10% of Coverage A. This coverage provides for increased costs associated with a loss due to the enforcement of city building codes for the demolition, repair or construction of the dwelling.
- Increased Replacement Cost on Dwelling – Allows for additional coverage beyond the standard dwelling limit, essentially protecting the homeowner if the cost to rebuild their home after damage exceeds the policy’s stated value due to rising construction costs or material shortages.
- Minor Violation/Accident Forgiveness – If a driver receives a minor traffic citation or has an accident, they have the assurance that their rates won’t increase just because of that violation.
- Decreasing Deductible – Drivers can earn a credit that can be applied towards their deductible in the event of a loss. Drivers must meet a requirement to earn this credit, such as staying accident and/or violation free.
How to Know When You Need an Endorsement
Having an up front conversation with your Cincinnatus Advisor is the best first step to securing the right coverage. Talk to them about your worries and priorities, as well as what you’re willing to spend. Our team has a good grasp of what our carriers can offer, and we can provide great options for you to consider to protect you from financial disaster.