Home Insurance Optional Coverages You May Wish To Consider

Flood Insurance

Homeowners policies generally do not cover flood damage. Depending on where your home is, you may qualify for flood insurance through the National Flood Insurance Program (NFIP) offered by the Federal Emergency Management Agency (FEMA) or through a private insurer. Contact an insurance agent for more information. If your home is in a flood plain, your mortgage lender will usually require you to buy flood insurance.


Earthquake Insurance

Damage from earthquakes or other seismic activity is not covered under most homeowners insurance policies. Earthquake insurance is available through most insurance companies at an additional cost. It is normally issued as an endorsement and attached to your home insurance policy.


Guaranteed Replacement Cost Coverage

Guaranteed replacement cost coverage provides a broader coverage for your home. It generally covers the full cost of replacing or repairing the home. To obtain this type of coverage, you typically must meet specific underwriting rules and conditions of the company. This may include increasing the amount of your insurance on a monthly, quarterly, or yearly basis to keep up with the inflation rate. Check with your insurance company or agent to determine if an additional premium is required and if there are exclusions or conditions that apply.


Inflation Guard Endorsement

If the replacement cost of your home is increasing with inflation, your policy limits must be periodically increased to maintain your coverage at 80 percent or higher. Even though the amount of homeowners insurance you carry is at least 80 percent of your home replacement cost, this amount of coverage may not be enough in the future. To aid you in keeping coverage at an adequate level, some companies offer an “Inflation Guard Endorsement.” This endorsement will allow your insurance company to automatically change your policy limit during the policy period. Normally, the higher premium is not billed until the time of renewal. Even if you have this endorsement on your policy, you should check your coverage limits periodically to make sure you are adequately, but not excessively, insured. Not all companies offer this endorsement, so check with your agent or company if you are interested in purchasing it.


Personal Property Endorsement

This endorsement is sometimes called a “personal article floater.” A personal article floater covers possessions such as jewelry, furs, stamps, coins, guns, computers, antiques, and other items where the value of the item may exceed normal limits in your home insurance policy. A personal article floater lists each article, gives a description of the article insured, and may require a certified appraisal for each item insured. The policy is generally written as an all-risk form and specifies excluded perils. Therefore, it provides coverage that is broader than the coverage granted in the typical homeowners policy. There is usually no deductible applied to this coverage.


Increased Limits on Money and Securities

This endorsement increases the coverage on money, bank notes, securities, deeds, etc.


Secondary Residence Premises Endorsement

Homeowners coverage under this endorsement applies to a secondary residence, such as a summer home. Remember that these secondary residences are not automatically covered by the home insurance policy on your primary or principal residence.


Watercraft Endorsement

Applicable to small sailboats and outboard motor boats, this endorsement extends personal liability and medical payments coverage as well as providing limited physical damage coverage to the watercraft. If you own a watercraft, discuss coverage options with your agent or insurance company, as broader coverage may be provided under a different policy form.


Theft Coverage Protection Endorsement

As a result of this endorsement, your theft protection is broadened. The contents of your motor vehicle, trailer, or watercraft are covered without proof of forcible entry.


Credit Card Forgery and Depositors’ Forgery Coverage Endorsement

Loss, theft, or unauthorized use of credit cards (with certain exceptions) is covered by this endorsement. Also covered is the forgery of any check, draft, promissory note, etc. – again, with certain exceptions. No deductible applies to this endorsement.

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