As a property owner, what happens when you need to modify your existing property insurance coverage to account for excluded perils? This is a common issue, especially if you live in a coastal area where flooding and high winds are often excluded from standard homeowners insurance policies. 

In these situations, you may want to talk to your insurance agent about whether an endorsement can address the gap or whether a separate policy is required. Flood coverage, for example, is typically written as a separate policy rather than an endorsement.

An endorsement (sometimes called a "rider", though endorsement is the standard term in property insurance) changes your policy by adding or removing coverage for specific perils, or modifying your coverage terms. Endorsements can be added at various points, such as when you sign up for your main policy, during your active policy term, or upon renewal, though availability is subject to your carrier's underwriting approval and is not guaranteed.

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How Endorsements Work

An endorsement is a document that amends your existing policy and becomes part of it. It is not a separate or standalone policy. 

Depending on its terms, an endorsement may add coverage, remove coverage, change a limit or deductible, or revise a definition or condition, but it operates within the policy it attaches to, and the policy's other terms, conditions, and exclusions continue to apply. 

This distinction matters at claim time: an endorsement does not give you a second set of coverage to fall back on.

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What Do Endorsements Do?

You can think of endorsements as belonging to one of three categories: endorsements that expand your coverage, endorsements that limit your coverage, and endorsements that modify your coverage.

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• Expand coverage: These types of endorsements increase your policy limits or add additional perils to your policy’s coverage. Common examples include scheduled personal property endorsements, which can provide broader coverage and higher limits for protecting high-value items like jewelry than the policy's standard sublimits allow. Others extend coverage to parts of your property that were not covered under your original policy.
• Limit coverage: These types of endorsements reduce coverage found in the original policy, sometimes in exchange for a lower premium. Read these carefully. A wind/hail exclusion or a cosmetic damage exclusion can save a modest amount of premium and cost a great deal at claim time.
• Modify coverage: These types of endorsements change details about your policy, rather than adding or removing coverage outright. You might use an endorsement to extend coverage to parts of your property that were not covered under your original policy. Examples include changing a deductible, adding a mortgage company or additional insured, or changing how a particular item is valued at claim time.

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Endorsements Added by the Insurer

You might be thinking, “Why would I ever want to decrease the coverage in my original policy?” Most policyholders don’t opt for decreased coverage; however, insurance companies can introduce endorsements to your policy as well. 

Have you ever gotten an email from your insurance carrier stating that your policy has been “updated” or automatically renewed? Pay attention, because this is often how carriers notify you about added endorsements that reduce coverage. For help understanding your policy and endorsements, contact a licensed Public Adjuster.

For example, hail may have been a covered peril under your original policy, but the carrier may add an endorsement that specifically excludes hail from future coverage. 

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Do you need an endorsement?

Endorsements allow homeowners to adjust what would otherwise be cookie-cutter policies to fit their particular coverage needs and peril risks. 

To understand whether you may need an endorsement to address coverage gaps, check whether your property is in a high-risk area for natural disasters and extreme weather. If there’s an increased risk of any of the following, it's worth asking your agent what coverage options exist. 

• Hail 
• High winds
• Wildfire
• Mudslide
• Earthquake

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Additionally, common exclusions for most homeowners policies may lead you to explore other endorsements for:

• Water or Sewer backup — may cover water backing up through sewers or drains and, in some forms, sump pump overflow. These endorsements are commonly written with relatively low sublimits, so check the limit, not just whether you have it.
• Inflation guard — automatically adjusts policy limits to reflect changing costs of materials and labor. The adjustment rate varies by carrier and is set out in the endorsement.
• Equipment breakdown — may cover appliance and system breakdown due to electrical or mechanical failure, along with food spoilage (if applicable)
• Vacant or unoccupied property — most homeowners policies restrict or suspend certain coverages once a dwelling has been vacant beyond a stated period. Depending on the carrier, this is addressed through a vacancy permit endorsement or a separate vacant dwelling policy, often with narrower coverage than a standard policy. If you own an empty rental or a seasonal property, raise it with your agent before the vacancy period runs out.

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Tiger Adjusters offers complimentary policy reviews. Book a free consultation to go through your current policy and endorsements with a licensed Public Adjuster, so you know what is covered, what is excluded, and what questions to bring to your insurance agent.