Endorsements To Your Property Policy

Policy endorsements that modify your insurance policy can be the edge you need after a catastrophe.  How they are used after a catastrophe can make a difference in total recovery, partial recover, or no recovery at all.

In this situation, an endorsement can add coverage for acts or things that are not covered as a part of the original policy.  Also referred to as: Rider, addendum, or an attachment.

Some of the more common endorsements are for:

1. Home Business Coverage. It often makes sense to cover those items in your home which are part of a home business.  Computers, electronic equipment, office furniture, etc.
2. Inflation Guard Endorsement. This endorsement raises the value of the property coverage by an agreed amount every year.  Adjusting the coverage up by 4% per year as an example.
3. Schedule Personal Property Endorsement. For certain items of value, an endorsement to add coverage for specific items may be added.  For example, jewelry, a gun collection, or other specific items.
4. Personal Property Replacement Cost Endorsement. An item loses value over time due to depreciation.  So, the actual cash value may be a lot less than the replacement value.  Endorsements can be added so that the actual replacement cost of an item is covered, regardless of depreciation.

Endorsements are generally an outstanding way to recover money.  The fact that a specific condition was given attention can greatly weigh in your favor.  However, it is not automatic that you will recover exactly what you think or deserve.

Here are tips that can help you recover more from your insurance claim:

• Get to know and use your Local and State Insurance Department and Consumer Affairs Divisions as a resource for any information concerning how to get the most for your insurance claim.
• Produce a physical list of your items covered under the endorsement(s).
• Make a very detailed video of your entire home, inside and out; as well as opening and videoing your drawers, cabinets, closets, attic, garage and garage attic, etc.  That way you can demonstrate what you owned.
• Be aware of what is excluded, don’t let the insurance company give you fast talk.
• Be sure to consider “Business Interruption” for your larger or more profitable business.
• Be sure to consider “Loss of Income” for your business.
• Be sure to capture your  “Loss of Rents” for any rental properties (commercial or residential.)
• Be sure to capture your “Loss of Projected Sales.”
• Know the details of your endorsements, ask for help to understand those details.
• You need to document everything, people you talk to, dates, phone calls, etc.
• Get to know and use your Local and State Insurance Department and Consumer Affairs Divisions as a resource for any information concerning how to get the most for your insurance claim.
• If a contractor or Insurer, Agent, or Adjuster, is doing anything that you deem unfair, you need to ask the Insurance Department to investigate them for a violation of the Unfair Claims Settlement Practices Act.
• Get to know any special commissions or emergency task force units and how they might help.
• Remember that a letter, formally written and expressed, can sometimes give you more power than you expect.