Understanding Renter's Insurance Plans Understanding Renter's Insurance Plans

Homeowner's insurance is something you need to purchase if you own a house, especially if you have a loan on the home. Without home insurance, you have no protection for your house or things. When buying a plan, you can choose from many options for coverage. You can also choose to add endorsements. Here is an explanation of what this means, the types to choose, and the pros and cons of endorsements with your home insurance plan.

What They Are

In the world of insurance, you will often hear the term "endorsement." Agents also call endorsements other terms, such as policy riders or add-ons. In all cases, these mean the same thing. An endorsement is an add-on to a policy you currently have. You can choose no endorsements if this is what you want or many. You can also have just one; it is up to you. Adding these to your plan provides more coverage for you, your home, and your things, and each endorsement provides coverage for one specific item or peril.

Types to Choose

An insurance agent can describe all the endorsements you might need when you speak with one. By hearing your options, you can choose the types you would like to have. Here are a few of the most common types:

• Sewer line coverage: Adding this coverage protects you if you experience issues with your home's main sewer line.
• Inflation guard: You can add this to gradually increase the coverage you have for your home's structure.
• Personal property: If you have expensive belongings, you can add protection for these items by naming them on your plan.
• Home business coverage: You can also protect your home business by adding this endorsement.

You can add these or others.

The Pros and Cons of Adding Them to Your Policy

The downside to adding endorsements is that they will cost extra. You can ask for a quote if you would like to know how much they cost. The benefit is that you have more protection by adding the right endorsements. Each one gives you extra coverage for a specific thing, covering more of the potential risks you have as a homeowner.

Does your homeowner's insurance policy provide you with all the protection you need? If not, talk to a home insurance agent to learn more about the endorsements you can add to your policy to get the coverage you need.