a person reviewing insurance riders and endorsements

Policy Endorsements – What Are They and Do You Need Them?

An insurance policy is designed to cover and protect everything in your home or apartment, right? Unfortunately, unbeknownst to many, the answer to that question is: no. There are policy limits on everything from renters insurance to homeowners insurance and business insurance, so if you have expensive items in your home or building, and something happens to them, they might not be covered.

This is where policy endorsements, also known as policy riders, come into play. Another type of policy endorsement is a change that’s made to your policy in the middle of its term. So, do you need policy endorsements? Depending on your situation, you just might. Let’s find out!

What Exactly Are Policy Endorsements?

A policy endorsement is something that adds additional protection onto your insurance policy. Any time that you need extra coverage or to make a change to your policy before your term is up, you need to purchase a policy endorsement.

For example, if you have a diamond jewelry collection that’s worth more than your homeowners insurance covers, then you’ll need a policy endorsement or rider to cover those items in case of theft or damage. Usually, that collection would be professionally valued, and then that amount would be what the insurance covers. The additional policy is then added to your overall insurance policy, so you won’t end up paying for two separate policies.

Another example is when you need to add a new vehicle to your existing auto insurance policy. If you’re in the middle of your policy term and just bought a new car without getting rid of any existing ones, then you’ll need a policy endorsement to cover the new car. The coverage on that car may or may not be the same as what’s on the other one, but regardless, the cost of that auto insurance will be added onto your existing policy so that you only need to make one payment each month.

Do You Need a Policy Endorsement?

Whether or not you need a policy endorsement depends on the circumstances. If you need to make changes to your insurance policies, whether they are homeowners, renters, auto, or even business insurance, then you’ll need to get a policy endorsement. These endorsements are even needed when you remove vehicles or people from your policies, for whatever reason.

In general, insurance policy endorsements are useful, because they allow you to make changes to policies that would normally be locked into place until their time period is up (usually six months, although it depends on the type of insurance.)

When it comes to making changes to your insurance coverage, always speak with your insurance agent. We’ll be able to walk you through the process of adding on an endorsement or rider, and even can suggest where to get your expensive items appraised, so you can ensure that they are valued properly on your insurance rider. And, although adding an endorsement to your insurance sounds complicated, it isn’t at all. The additional coverage is added to your insurance policy, so that you only make one payment, not multiple ones, making everything less confusing, but ensuring that all your assets stay fully protected.

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