Determine if your home is properly protected.
When disaster strikes your home, your home insurance is supposed to be there to help you pick up the pieces. Most of the time, it does. However, every coverage has its limits. Endorsements (also called riders) allow you to raise the overall limit for certain categories of items, further protecting your home and wallet in many scenarios. In essence, you purchase additional coverage and protection, and your insurer will reimburse you up to these raised limits.
In the event of damage or loss, many people are surprised to find that certain items are excluded from coverage when filing a claim with their insurance. Ask your insurance agent if these (if any) are included in your home insurance policy, and acquire the coverage if they are not.
- Business Activities: Typically, home insurance covers only minor losses such as damage or theft of home office equipment. Purchasing separate business insurance is the best way to guarantee that your home business will survive disasters, from clients injuring themselves in your home to stolen business equipment. Many standard policies only cover $2,500 for business property damage in your home. With a home business endorsement, you can receive up to $70,000 worth of coverage for your business property.
- Jewelry, Furs, and Similar Valuables: Your standard homeowner’s insurance policy may not offer enough coverage to protect your high-valuable belongings from loss. These items require a separate rider or policy to guarantee full replacement cost. A personal articles floater extends the amount of coverage for your articles, such as furs, fine art, and jewelry. It also covers loss resulting from perils not included in your homeowners policy, such as accidental loss.
- Sewer and Drain Back Up: Also called ‘water backup,’ a backed-up sewer or drain can cause significant damage to a home. Because of this, it is often excluded from standard home insurance policies and is not covered by flood insurance. If your current policy doesn’t provide protection from sewer and drain back-ups, it’s a good idea to consider purchasing this endorsement.