08/06/2026
Homeowner's Overview: Part III
In parts I and II this week we went through a general overview of how a home and it's contents are covered and how liability works on a homeowner's policy. The last part of a homeowner's policy is what I call "extras".
Extras come in a wide range and variety and options. These are called "endorsements" and can cover everything from a business in the home to daycare in the home to equipment break down. There are four very common endorsements being offered in the industry right now, so those are the ones I'm going to focus on. Check the "Tips" part of this post for more on what your company might be able to offer you.
The first and most common endorsement offered is an endorsement to cover the failure of a sump pump or the back up of the main sewer line. These failures can occur from a variety of reasons, and when they happen, the damage caused can be financially significant for the homeowner. A back up of sewer and drain endorsement can really help offset or completely cover that loss. This endorsement is especially useful if you have a finished basement. You may not need this endorsement if your home is built on elevation or at a high point of your neighborhood / property.
The second most common endorsement being offered right now, especially in IL and WI, is full replacement cost of siding and shingles. The past decade in the Midwest has seen a huge spike in wind and hailstorms, and those years have even included a few tornadoes. This has caused a spike in damage to homes, and payouts from insurance companies to fix the damage those storms have caused. As a result, most companies in the industry have moved away from policies that offer full replacement cost and instead are offering limited replacement cost when that type of damage occurs. If your roof is older, if your siding is older, and your company has made changes to how these types of losses are covered, this is an endorsement that is well worth it. You don't want hail to destroy your roof, find out you have a 40 or 50K bill, and then learn that because your shingles are 10 years old, you're only getting half.
Three and four are less common, but equally useful and certainly things to consider. These are endorsements that cover permanently installed equipment like your furnace, AC unit, hot water heater, etc. Any equipment that could be considered "permanently installed". It could cover something like heated floors in a shop or garage as well. The final endorsement is for service lines that come to the home from the street -- your sewer, water, electrical and potentially your internet / tv / phone service. Imagine a tree grows through the water main in your front lawn. It needs to be ripped up and repaired. The city says it's your tree and your line. But it's the city's line. The back-and-forth over who is going to pay to fix this is almost as exhausting as not having water. This endorsement alleviates the need to go back and forth with the servicing entity.
Tips / Things to Review:
Do you have a finished basement, a sump pump, or is your home on a "low spot"?
How old is your siding and roof, and do you have full replacement value on your policy?
How old are your ac, furnace, and water heater? Do you have funds available for an emergency mechanical repair to any of those items?
Who is responsible for the main service lines coming into your home, and where does your ownership begin? (Call your city / township / village for this info)
Extras are available for all sorts of things, and only you know what you have going on in your home. If you offer in home day care services, or pet sitting, or use your home as an air bnb occasionally, asking for a comprehensive review of what your company can offer to mitigate a loss is a GREAT idea!
