Homeowners Insurance Endorsments: Are They Necessary?

Unless you are a qualified insurance agent, the intricacies of a homeowners insurance policy can be tough to wrap your head around. Last time we discussed the basic coverages available on a typical policy, so now we will move on to the section detailing additional coverage options. For extra protection, supplementary coverages, or endorsements as they are sometimes called, can be added on to your existing policy for an additional fee. However, many add-ons are not relevant to your needs and can raise your premium by a hefty amount. To ensure that you are not being duped into purchasing unnecessary coverage, the expert agents at Tri-Star Insurance Professionals Inc. in the North Dallas, Plano and Frisco areas can be your guide to the complex world of homeowners insurance policies in order to find one that fits your specific needs.

In addition to standard coverages such as liability and personal property, there are a variety of extra options available such as:

Guaranteed replacement coverage cost: Should you lose your home in the event of a disaster such as a fire, the actual construction costs for complete replacement could outweigh the current market value of your home. Guaranteed replacement coverage cost will pay to rebuild your own with no percentage limits as long as you have met the requirements of your home insurance policy. This kind of supplementary coverage is great for people with older or historic homes. Failure to completely cover your home at the full replacement value can be a painful shock if you are forced to pay out-of-pocket expenses.

Extended replacement cost coverage: Similar to guaranteed replacement coverage cost, extended replacement coverage cost insures your home for a certain value and then adds 20 – 25% in case replacement construction costs run over the coverage limit. 

Scheduled personal property: Valuables such as coins, jewelry, antiques, electronics and furs are items that often exceed policy limits in a basic homeowners insurance policy. Scheduled personal property provides broader coverage for things of great value with no added deductible. Just knowing that your treasures are safe may be well worth it.

Secondary Residence: If you have vacation home in the mountains, or even a cabin by the lake you would probably feel better knowing that it is safe while not in use. Secondary residence coverage provides protection for a second home under a reduced rate when coupled with your primary policy.

Theft coverage protection: Basic theft coverage is included in a standard policy, but what about special items such as a motor vehicle, trailer or watercraft? Theft coverage protection covers such specialties without needing proof of forcible entry.

Earthquake endorsement: This sounds silly, but in states with a  high frequency of earthquakes or landslides, earthquake endorsements are no laughing matter. The percentage deductible is generally anywhere from 5% - 25% depending on the state you live in. Residents of California would naturally have a higher deductible.

To learn more about how you can fully cover your home and personal effects contact Tri-Star Insurance Professionals, Inc. today at 214-387-0600 or toll-free at 1-800-990-4600.