Jessica Fox Last Updated On: September 19, 2023

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What Is An Insurance Endorsement? 7 Types Everyone Should Consider For Their Home

Insurance Endorsement

While most home insurance coverage will protect against common incidents and accidents, insurance endorsements exist to provide protection against an additional scope of possible unexpected—and unwanted—outcomes.

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What Is An Insurance Endorsement?

An insurance endorsement covers your home against perils that are not covered under most policies like natural disasters or running a home-based business.

What’s more, endorsements can provide additional coverage for belongings that are not fully covered under your homeowners policy, like fine art, jewelry, or electronics. 

While homeowners insurance endorsements are easy enough to get (you just need to contact your insurance provider or request a quote from a new provider), a recent survey by Policygenius reveals that 47% of homeowners are not covered against important perils—perils like natural disasters that are becoming increasingly common in many areas due to the changing climate

Add this to the fact that the cost of rebuilds is on the rise, and unprotected homeowners could find themselves in financial straits due to an unfortunate, but preventable, lack of coverage.

List of Homeowners Insurance Endorsements Everyone Should Consider

Not everyone needs all kinds of home insurance endorsements. For instance, if you don’t have super expensive jewelry, electronics, or art, you likely won’t need more than the standard blanket personal property coverage, which often caps at $2,500. And if you don’t have a home business, you won’t need home business insurance liability.  

However, there are a few home insurance endorsements that we think everyone should consider.

  • Extended replacement coverage. The cost of inflation is skyrocketing and natural disasters abound. Since the cost of home rebuilds increases during these uncertain times, extended replacement coverage can help by increasing your coverage limit by 10% to 50%. The cost of this homeowners insurance endorsement can be as little as $25 per year, so it’s definitely worth looking into.
  • Water backup damage. This is one of the most popular homeowners insurance endorsements. In the event water backs up through your plumbing and damages your belongings or home’s foundation, standard home insurance policies won’t cover it. But for as little as $30 a year, you can get additional coverage
  • Natural disaster coverage. With the changing climate, natural disasters are becoming more frequent. If you live in areas prone to floods, mudslides, or windstorms, it’s worth your while to look into a separate home insurance endorsement for these perils. The amount per year will vary based on where you live, but it costs you nothing to get a free quote. We can help. Get your fast and free quote now.
  • Law coverage. In the event you experience an incident that requires a rebuild for a covered loss, law coverage (also called ordinance coverage) is a homeowners insurance endorsement that will cover the extra cost associated with getting your house up to code. 
  • Equipment breakdown coverage. Anyone who has ever had a fridge or furnace breakdown can tell you what an expensive inconvenience this can be. Equipment breakdown coverage is a type of homeowners insurance endorsement that will take care  of the cost of repair or replacement if certain appliances break down due to electrical or mechanical failure—all for as little as $25 per year.

Covered equipment usually includes:

  • Water heaters
  • Microwaves 
  • Ovens
  • Home entertainment systems
  • Heating systems
  • Air conditioning
  • Boilers
  • Furnaces
  • Computers
  • Refrigerators
  • Freezers
  • Washers
  • Dryers
  • Home security systems

And get this. equipment breakdown insurance can also cover food spoilage if your fridge or freezer stops working.

Just be aware: as inexpensive as this type of homeowners insurance endorsement is, there’s usually a deductible of $250-$500 that you will have to pay before the coverage kicks in. 

Another word of warning: if your equipment breaks down due to wear and tear, rust, pest damage, defects, or anything that could be considered a maintenance issue, then this endorsement won’t cover you. This is another reason it’s important to take care of your appliances.

  • Service line coverage. Utility line ruptures can happen, and most homeowners insurance policies will cover damage to your home caused by them. But you know what it generally won’t cover? Repairs to the lines themselves.

What are we talking about when we mention service lines?

  • Power lines
  • Drain pipes
  • Fiber optics
  • Cable lines
  • Natural gas pipes
  • Water lines
  • Internet lines
  • Steam pipes
  • Sewer pipes
  • Sprinkler pipes

Service line coverage will protect you against damage to all these lines. The bonus? it will also protect against perils to service lines that isn’t covered in your regular home insurance policy—perils like:

  • Pest damage
  • Wear and tear
  • Electrical or mechanical breakdown
  • Wet rot
  • Mold
  • Fungus
  • Tree or root caused damage
  • Smog
  • Rust
  • Other corrosion

The cost of service line coverage comes in at roughly $30 per year, though of course prices vary, and you should shop around and get a free quote to get the best price. 

  • Identity theft coverage. Identity theft is on the rise, and children and the elderly are most at risk. Even if you don’t fall into this demographic, it’s certainly worth considering this type of homeowners insurance endorsement. Some home insurance policies cover this peril already, but if yours doesn’t, coverage will take care of the cost of identity theft recovery. Just keep in mind, while the endorsement will cover the cost of the recovery, it will not cover the cost of losses incurred because of the identity theft. So if your bank account is drained, this home insurance endorsement will not protect against that.

What the recovery coverage will take care of includes: 

  • ID replacement
  • Administrative fees
  • Attorney fees
  • Loss of income
  • Fraud services

Additionally, you can tack on extra coverage against cyber attacks, cyber extortion, and fraud coverage. 

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The Takeaway: You Should Look into Home Insurance Endorsements

Home insurance endorsements can provide you with life-changing protection for very little money up front. Like all insurance, it’s an expense, but often a comparatively small expense that provides you with a peace of mind that’s absolutely priceless.

Get a free insurance quote now, and ask about homeowners insurance endorsements. We’ve been helping people save money on insurance for years, and even if you’re happy with your current provider, it never hurts to shop around and make sure you’re getting the best coverage at the best price.

Jessica Fox Jessica Fox has been a freelance writer for five years, with a specialty in health, wellness, and insurance. During this time, she’s written for some of the biggest B2B and B2C brands from around the world. Jessica is also the mother of two young daughters and loves coffee, writing, and working out.

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