homeowners insurance policy

There is a reason all quotes are not the same because each homeowners insurance quote proposal may include or exclude “add ons” or endorsements.

These “add ons” can increase the premium or the amount of the policy.

And most you don’t need.

You can call five different insurance agencies and get five different quotes all on the same house and from the same company.

Why?

There are endorsements or “add ons” that can be added or left off on any quote proposal and some agents will just add some in to increase the premium.

 

Here is a review of the most common endorsements on a homeowners insurance policy.

 

Animal Liability Endorsement

Golf Cart Physical Damage & Liability endorsement

Ordinance or Law Increased Amount of Coverage

Identity Fraud Expense

Equipment Breakdown Enhancement

Personal Injury

Water Back up and Sump Discharge

Personal Property Replacement Cost

 

Every home owner is different.

Every house in New Orleans is different.

Now in no way will I ever say you don’t need any of the endorsements above or the above is a complete list of all homeowners endorsements but you should have an idea or an explanation of each endorsement available to you if you need them on your policy.

The difference could be $200-$600 a year in annual premium.

 

ANIMAL LIABILITY 

Even if you don’t have a dog at this time, you should consider adding this endorsement.

The usual cost is $50 a year.

This endorsement will add usually a sublimit of coverage such as 25,000 towards a defense of an alleged dog bite claim on your property.

Most dog owners believe “my dog would never bite anyone”.

 

An old saying is “It only takes a second for something that would never happen in a million years to happen”

 

GOLF CART ENDORSEMENT

Obviously if you don’t own one or intend to own one this may be an easy decision but just remember if you do buy one, check with your agent to make sure its covered.

Some policies offer this endorsement but could add stipulations or a “trigger” for the liability to kick in such as 

“The golf cart must be used in a gated community”

or

“The golf cart is covered if used in a neighborhood or community with a golf course”

Most homeowners policies exclude coverage because you can buy a stand alone Golf Cart policy that will cover liability and property coverage and the policy usually begins at $150.

 

ORDINANCE OR LAW COVERAGE

Usually a percentage 10%, 25% or 30%, this endorsement will cover any improvements to the repairs to your house after a claim because of a building code requirement that was not in force when the house was built.

ex) If your house was built in 1985 and you have a claim today, its safe to say you would have to rebuild your house to the new building code enforcement.

When the house was built were hurricane straps required on the roof?

Are they required today?

If so, the estimate would not include the cost of installing roof straps because your house did not have any but the new code in Jefferson Parish or Orleans Parish may require you to do so.

Check with a local contractor and ask if the building codes in your Parish have changed since your house was built.

Most homeowners policies include a % such as 10% of the insured dwelling limit to be used for this type of issue in the HO-3 Special Form policy.

 

IDENTITY FRAUD

This coverage on a homeowners policy usually only covers the “expenses” you incur as you attempt to repair your credit.

The coverage does not reimburse you the amount that was stolen from a checking account or any amount you are responsible for because you are victim of an indentity theft.

Most credit card companies include this identity theft coverage for being a card member.

I would check with them before you add this endorsement.

 

EQUIPMENT BREAKDOWN

Most often this is the endorsement that gives coverage for the usual exclusion of “wear and tear” or “maintenance” type item.

The mechanical breakdown of the equipment in your house is usually subject to a special deductible.

Most often $100-$500 and there is a sublimit of damages.

Could be a limit of around $50,000 of damage.

 

PERSONAL INJURY

This coverage can add protection against any alleged Libel or Slander claims.

This coverage is needed more today with the popularity of social media.

People say or type the craziest things on social media these days.

 

Do you know what your daughter is typing on Facebook?

Some home policies have a sublimit such as $25,000, so check your policy.

 

WATER BACKUP COVERAGE

This endorsement is coverage for direct physical loss, not caused by negligence of any “insured” to property covered under Section I of the policy by water or water-borne material which

Backs up through sewers or drains on the “residence premises”

Overflows or is discharged from a sump, sump pump or related equipment, even if such overflow or discharge results from mechanical breakdown

Coverage does not apply to direct physical loss of the sump pump or related equipment which is caused by mechanical breakdown

The claim may be subject to a special deductible starting at $250 on some home insurance policies

What about an accidental water claim such as (caused by negligence)

  • overflow of a toilet
  • overflow of a bathtub
  • frozen busted pipe resulting in water damage

These type of accidental claims are covered under the home insurance policy as water damage and are not subject to a Water Back Up Endorsement because the water issue did not originate through sewers, drains or discharges from sump, sump pumps and related equipment.

Learn more about Water Backup and your homeowners policy click here

 

PERSONAL PROPERTY REPLACEMENT COST

There are two options offered to you on your contents or personal property.

  • Replacement Cost
  • Actual Cash Value

Replacement Cost allows you to replace the damaged item of like kind or quality.

So if you had a 5 year old 46” Samsung TV,

you could go out and purchase another 46” Samsung TV.

Actual Cash Value is Replacement Cost minus Depreciation

So if you had a 5 year old 46” Samsung TV,

the claims adjuster would deduct 5 years of depreciation from the replacement cost of a 46” Samsung TV.

Ex) 5 years of depreciation at $50/year = $250 deducted or depreciated

Replacement Cost is $500 for a new tv minus $250 depreciation,

You would receive a check for $250.

 

So what’s this all about?

So if you are getting Homeowners insurance Quote Proposals for your New Orleans homeowners insurance, take a look at some of the endorsements that are are included or maybe you notice some that are not listed.

You should not be left to discover you needed an endorsement but it was never discussed and it was not included in the homeowners policy.

 

Home Insurance policies do not cover everything.

If they did you would receive one piece of paper from the insurance company when you purchased a new policy and that would be a receipt.

Instead you receive a thick policy full of exclusions and a description of what is not covered.

We want to protect your home.

We are focused on writing you a new policy so when you make a claim, it gets paid.

My name is Tim D’Angelo and I am the owner of FM Agency Group.

I would love the opportunity to talk to you about Home Insurance.

So if you are ready,  complete the form below