An endorsement is a separate policy attached to your homeowners’ policy. Many endorsements can be quite valuable and save you thousands of dollars over the life of your policy. Other endorsements may not be as necessary as you might think.
Take a quick look at your policy to see if you are paying for the following.
Identity Theft Coverage
Identity theft is on the rise, especially connected to various types of cybercrime. Having some identity theft protection may be a good idea. You may find better coverage for a more affordable price if the coverage is not attached to your homeowners’ policy. It may not be cost-effective if you have to pay a deductible to file a claim. If you are worried about your credit cards, they will provide you with much of what you need to take care of the problem without buying additional coverage.
Coverage for Mechanical Breakdowns
Home insurance is meant for a catastrophic or significant loss. If you are paying for mechanical breakdown coverage, filing the claim will take longer than having your appliance or HVAC unit fixed. When something breaks, you don’t want to wait to have repairs made. This is especially true if your furnace goes out in the middle of a cold spell in January. Besides, making too many small claims on your appliances can make you high risk and cause your premiums to go up.
Sewer and Drain Back-ups
Sewer and drain back-ups can be messy. The problem with this type of policy is that it usually comes with its deductible, and your coverage will have a cap of about $5,000. It may not be cost-effective to file a claim. Most insurance companies have started to include this type of coverage, so an endorsement may not be necessary. Go through your policy carefully to find out what is covered and what isn’t. Go through your endorsements to see if additional coverage has been added.
Off-Premises Theft Exclusion
An off-premises theft exclusion is an endorsement that eliminates certain types of coverage from your policy. When we travel, we normally don’t carry anything of value other than our cellphones and maybe a few electronics. If these items happen to be stolen from your hotel room, their total value will probably not exceed your deductible if you file a claim. If that’s the case, then filing a claim to recover your items is useless.
If you are trying to figure out what endorsements you can do without, meet with an agent and review your policy. Contact the agents at Abatelli Insurance. We have years of experience you can rely on when it comes to customizing your policy so that it meets your needs. Don’t pay for insurance you don’t need or won’t use! We can help you fine-tune your policy to make it more cost-effective.
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