Insurance terminology can be quite confusing because insurance is a complicated business. Providing insurance coverage requires intricate risk factor calculations, diverse coverage options, and balancing affordability with comprehensive protection. What results is a legally binding contract between the policyholder and the insurance company. The policy outlines the rights and responsibilities of both parties. At times, a legally binding change to an insurance policy is needed. That's where endorsements come in.
What is an insurance endorsement?
An insurance endorsement, sometimes called a rider policy or clause, can be used to customize or enhance coverage, or limit or delete coverage from your current policy. It also can include adding extra coverage or a specific type of coverage to your policy. Since endorsements can have real impacts on your coverage and claims, it's important for the policyholder and the insurance company to mutually and legally agree to the modification in writing.
Types of insurance endorsements
There are four main types of insurance endorsements.
Standard endorsements
Standard endorsements are widely used requests of changes to an insurance policy. Insurance providers offer straightforward templates for these types of routine modifications.
Examples of standard endorsements are:
- Changing names or addresses on an insurance policy
- Adding a new car to an existing policy
- Adding an additional person to a policy
- Increasing coverage limits
Non-standard endorsements
Non-standard endorsements are specially drafted changes to a policy used to protect high-value assets or safeguard you or your carrier from unique risks and exposures. These types of endorsements are more unusual.
Some non-standard endorsements, called policy exclusions, limit your scope of coverage by excluding certain risks and are initiated by your carrier. The purpose is to release the insurer from liability involving certain damages or injuries from a perceived high or unpredictable risk.
A canine liability exclusion is an example of endorsement that may be required by an insurance carrier as part of your homeowners insurance agreement. Normally, your personal liability homeowners coverage would cover pet-related liability incidents, but this clause clarifies that your insurer will not handle claims or offer payouts for incidents involving animals or dogs, such as property damage caused by pets or personal injury lawsuits from dog bites.
Voluntary endorsements
Most endorsements are voluntary which means they are added to a policy voluntarily by either the insured or the insurer, are not required by law, and are coverages not included by your standard homeowners insurance policy. As a property owner, you may want to consider these options to make sure you’re fully protected for belongings with high value, such as jewelry, art or collectibles.
Mandatory endorsements
Mandatory endorsements are legally required and governed by state or federal regulations. In Virginia, drivers must have auto insurance that covers bodily injury liability, property damage liability, and protection for uninsured and underinsured motorists. For home insurance, some Virginia homeowners can be legally obligated to have flood insurance based on their location and risk factors.
What voluntary insurance endorsements does Northern Neck Insurance offer?
Northern Neck Home Insurance Endorsements
Northern Neck Insurance has a number of optional coverages you can add to modify your existing Northern Neck Insurance home and car insurance policy. All of these offerings have exclusions and qualifications that your local insurance agent can guide you through. All endorsements carry deductibles like any other coverage.
The NNINS Superior Homeowners Endorsement
Designed for homes built after 1975, our proprietary Superior Home Endorsement includes a package of great extra coverages on top of your standard homeowners insurance policy:
- Earthquake damage
- Equipment breakdown
- Sinkhole collapse
- Loss caused by water which backs up through sewers or drains
- Credit card, fund transfer, forgery and counterfeit money increase limit
- Refrigerated property damage
- Personal injury
- Special debris removal coverage
Earthquake Endorsement
Our earthquake coverage can protect your home and property from loss resulting from an earthquake, such as structural damage, personal property, and living expenses if your home is unlivable during the repair process.
Increased Special Limits Endorsement
This endorsement provides coverage for valuable personal property that might surpass the limits of your standard homeowners policy. This added protection is great for jewelry, collectibles, watches, furs, some types of gold and silver, banknotes, and firearms.
Rural Estate Endorsement
This coverage is designed as supplemental coverage for a small "gentlemen's farm" and provides dwelling, liability, and livestock protection for non-commercial properties. Livestock for personal use, including horses, cows, sheep, pigs, hay, grain, field crops, and more, are covered as long as there are no activities involving boarding, training, breeding, farm experience, or retail selling.
Personal Liability Umbrella
Our personal umbrella coverage provides extra liability coverage above and beyond your home and auto insurance and protects you financially if you cause injury or damage to someone else's property. Without umbrella coverage, you would be responsible for the amount not covered by your homeowners policy — putting your other assets at risk including your home and investments.
Service Line Endorsement
Northern Neck Insurance Company's service line coverage can provide protection for underground utility lines and wiring that run from your house to the street for a minimal increase in annual premium. Costly damage to these lines can be caused by tree roots and ruptures and are the responsibility of the homeowner. Coverage can pay for excavation and repair to the utility line, walkways, driveways, and affected landscaping.
Equipment Breakdown Endorsement
Our equipment breakdown coverage assists in repairing or replacing permanently installed home equipment that malfunctions or fails due to unexpected events, like lightning strikes. It does not cover normal wear and tear or damage resulting from neglect or inadequate maintenance.
Cyber Protection
Our cyber protection endorsement is coverage to protect your family's online activity and the cybercrime that comes along with it. With the increasing size, complexity, and cost of online threats, this additional coverage can assist in covering expenses related to email scams, identity theft, cyberbullying, and tax fraud, among others.
Sewer/water Backup Endorsement
Home sump pumps can fail and plumbing lines can clog, creating a big mess and damaging property. This home insurance endorsement provides coverage for loss and damage from water backing up from drains, sewers, or overflow from a sump pump in your home.
Special Debris Removal Endorsement
This homeowners insurance add-on coverage provides help with the cost of removing trees and other debris from covered perils that do not involve direct damage to other property covered by your standard home insurance.
Refrigerated Property Endorsement
Imagine the power going out for two days right after you've just returned from the grocery store. Our refrigerated property coverage can help reimburse you for lost perishables up to $500 and is super affordable.
Sinkhole Collapse Endorsement
Sinkhole coverage covers your home, other structures and personal belongings from sinkhole damage. Sinkholes form when bedrock is dissolved by groundwater creating an underground void and can occur after a sudden influx of heavy rain following a period of drought. When it becomes unstable, a collapse occurs and can damage structures, driveways, and other property.
Northern Neck Car Insurance Endorsements
Towing and Labor Endorsement
Emergency roadside assistance is available to all customers who have our towing and labor endorsement added to their Northern Neck car insurance policy. This coverage provides a reimbursement of up to $75 per towing occurrence. You may choose any vendor you prefer and file a claim with your towing receipt.
Do insurance endorsements change your insurance rate?
Your insurance policy premium might change based on whether you decide to increase your coverage. For example, adding earthquake coverage provides extra coverage and usually increases your rate because your home and property will have added protection if you experience earthquake damage.
Not all endorsements increase your premium. Changing a name on a policy usually does not affect your rate, while adding an additional person to your policy might raise your rate if it provides you with more coverage. In some cases, an endorsement can even lower your premium when it limits the amount of coverage for a certain type of claim or event. Adding exclusions and choosing higher deductibles can also reduce your premium. Your local insurance expert can help you navigate endorsements to give you peace of mind.
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THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNINS Virginia insurance experts through our blog. While we hope you find this to be a helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.
