Homeowners insurance endorsements: A complete guide

What is a homeowners insurance policy endorsement?

A homeowners insurance policy endorsement expands on the standard homeowners coverage by adding to or modifying the insurance policy. It can add coverage, fill in an exclusion gap, increase a coverage limit or change how part of the policy works. The endorsement becomes part of your insurance contract and takes priority when its wording differs from the original policy.

Endorsements are also called riders or policy add-ons.

No two homes (or homeowners) are alike. Homeowners insurance endorsements allow you to customize your coverage based on your needs.

For example, home insurance policies set coverage limits on the value of your personal property. What happens if you have an expensive collection of vintage watches with a value that exceeds the amount of coverage on your policy?

You can buy a home insurance endorsement for the value of your special watches to make sure they’re fully covered if something goes wrong. This type of endorsement is also known as a floater.

Home insurance endorsements usually raise the cost of a homeowners insurance policy, because they add additional coverage or expand existing coverage.

What is an endorsement premium on a home insurance policy?

An endorsement premium on a home insurance policy is an extra cost added to your regular premium for additional coverage. Endorsements, also known as riders, provide protection for specific items or risks not covered by your standard policy. For example, you might add an endorsement for mold-related damage, which adds an extra cost to your policy.

Common home insurance endorsements

Common homeowners insurance endorsements cover risks or property that your standard policy doesn't fully cover. Popular options include scheduled valuables, sewer backup, equipment breakdown, service lines, earthquake coverage and extended rebuilding protection.

Two examples of endorsements in insurance policies for personal property are:

Floaters, or scheduled personal property endorsements, cover anything of high value, like jewelry, fine art or computer equipment. These require proof of the item's value, usually via an appraisal. They only cover the item or items listed on the floater.
Personal property replacement cost is an endorsement that changes the way all of your personal property is covered. Instead of being covered for its depreciated value, personal property is covered for the amount it would cost to replace it today.

Other endorsements focus on the house itself or risks that standard homeowners insurance excludes.

For example, water backup coverage protects against certain sewer, drain and sump pump backups. It is not the same as flood insurance, which is a separate policy rather than an endorsement.

List of homeowners insurance endorsements

Your standard home insurance policy comes with exclusions and limitations on what is covered. You can find exclusions in Section 1 of your policy. There are a lot of types of endorsements in insurance.

Flood insurance and water damage caused by a water backup aren’t included in a standard policy. Some companies may even limit hail or wind damage coverage. If you have a home business, you may need a home business insurance coverage endorsement, and if your home is undergoing major renovations, look into a dwelling under construction endorsement.

The following list includes 25 home insurance endorsements that expand the standard coverage included on your homeowners policy. There may be other endorsements available from some insurance companies.

Common home insurance endorsements and what they cover
Endorsement	What it covers
Cyber security	Cyber fraud, such as cyberbullying and extortion.
Earthquake	Adds coverage for damages that occur due to an earthquake or any other type of earth movement.
Equipment breakdown	Pays for the repair or replacement of appliances and systems, including HVAC, water heaters, furnaces, washer and dryers, refrigerators, computers and more.
Escaped liquid fuel remediation	Increases the amount for cleaning up an oil or fuel spill in your home.
Extended replacement cost	Pays to restore your home to its original condition, even if it exceeds the coverage limit.
Food spoilage	Increases the amount paid to replace your refrigerated food if there was a covered peril event, such as a power outage from a snowstorm.
Home business	Increases coverage for your home office property and adds legal liability coverage. Most homeowners insurance policies only provide $2,500 for property and no business-related liability.
Home daycare	Adds liability insurance while you’re caring for others in your home.
Home under construction	Pays for the theft of building materials or damages while it’s under construction.
Identity theft	Pays for the costs incurred from identity theft and fraud, such as ID replacement, attorney’s fees and loss of income.
Inflation protection	Automatically increases your limit to keep up with inflation so you can rebuild your home at the current cost.
Loss assessment	Expands liability coverage to public areas in condos or dwellings that are part of a homeowners association.
Mold and fungus	Expands home insurance for damage and loss caused due to mold or fungus and pays for the cost of testing or replacing of items such as carpets and drywall.
Ordinance or law	Increases the limit of your homeowners policy for fees and expenses to bring your home up to code.
Increased other structures coverage	Expands the limit on your policy for fences, detached garages and other structures.
Personal injury	Increases personal liability coverage by adding protection against slander, libel, false arrest, defamation and more.
Personal property replacement cost	You’ll be reimbursed for the cost of a new version of the lost item instead of the standard actual cash value. Actual cash value coverage reimburses you for what the property is valued after depreciation. Replacement cost gives you enough to buy new items.
Scheduled personal property	Covers named property, such as collectibles or expensive equipment or jewelry, for an agreed-to value.
Secondary residence	Expands your homeowners insurance to cover a second vacation home. It may be a cheaper alternative to buying a separate policy for the second home.
Service line	Pays for repairs to internet and phone lines, sewer pipes, water pipes, natural gas and electrical lines caused by wear and tear, breakdown or damage caused by rodents, insects or vermin.
Water and sewer backup	Pays for water damage caused to your home’s interior or foundation because of a clogged or backed up sewer, sump pump or drain.
Watercraft	Adds property damage, liability and medical payments coverage for your boats or watercraft, whether in use, docked at a marina or stored on your property.
Windstorm*	Adds coverage for hurricanes or severe winds, usually with a separate deductible.

*Windstorm insurance is included in most standard policies, but is an endorsement in some areas.

FAQ: Homeowners insurance endorsements

Are homeowners insurance endorsements worth it?

Yes, some endorsements are worth the added cost if they protect you against a loss you could not easily cover yourself. For example, water backup, scheduled personal property or extended replacement cost coverage all fill important gaps. Compare the added premium with the amount of financial protection you receive.

Does adding an endorsement increase home insurance rates?

Yes, adding coverage through an endorsement increases your homeowners insurance premium. The amount depends on the type of coverage, limit, deductible, insurer and property.

Is flood insurance a homeowners endorsement?

No, flood insurance is not an available endorsement on a homeowners policy, and flood damage is not covered by home insurance. You need a separate flood policy to protect your home and belongings. Flood insurance covers qualifying events such as storm surge, overflowing rivers and accumulating surface water. A water-backup endorsement covers sewer or drain backups, not flooding.