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Read Your Homeowner’s Insurance Policy – You May Need More Insurance | Property Insurance Coverage Law Blog | Merlin Law Group


A homeowner’s policy will, no doubt, help you sleep better at night. It’s a new year after all – everyone should read their insurance policy. But if you have not read your policy lately, or ever, then you may have a rude awaking when a sudden loss is not covered and leaves you financially devasted. Below are some of the more typical endorsements you may need or want.

A typical out-of-the-box standard homeowner’s policy covers losses against fire, storm damage, and other named perils. It will pay for repairs, loss of use, liability claims, and medical payments. Depending on the policy you have, the losses will be covered either by actual cash value or by replacement cost. Actual Cash value means that the policy will replace or repair the damages to your home and personal property minus depreciation of the item. Replacement cost value is a better option because it will repair or replace your damaged home and personal property at today’s market price.

If you read your policy, you will notice a section for what is excluded from coverage in the policy. A typical homeowner’s policy, will exclude, flood ( must obtain a separate FEMA flood policy from the federal government which hires private insurance carriers to sell flood policies); business equipment, construction defects, very valuable personal property (jewelry, rare collections of almost anything, art, and guns to name a few), pollution, frozen pipes, vandalism, pets and other animal on your property, damage from war, or nuclear accident, and every insurer’s favorite exclusion “wear and tear.” This is not a complete list, but these are some of the most common exclusions.

If you desire protection from any of these exclusions, you can get an endorsement or policy rider.

It is not surprising, these additional endorsements come with an additional premium. Besides an endorsement, there are also separate specialty policies one can purchase such as for FEMA flood insurance, boat insurance, earthquake insurance, or for a small airplane.

Examples of the typical endorsements that you may need or want include, but are not limited to:

There is no guarantee that endorsements will help you get a better night’s sleep and they will cost you more in the short run, but they may be worth it in the long run. One thing for sure is that you will never know what coverage you have and don’t have and may need or want until you read your policy, which, by the way, may just put you to sleep.


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