HO3 Insurance 101: What endorsements can agents add?
The HO3 insurance is something that provides your clients peace of mind. They sleep peacefully at night because they know if something out of the blue were to happen at or to their home, their HO3 insurance is protecting them. But as their agent, are you sure this is the case? Are they a hundred percent protected? Or do they need an endorsement?
HO3 insurance includes coverage that the majority of people require. That is how
the premiums are so affordable due to risk diversification. Considering that, there are small exclusions and limitations in the policy that might not satisfy the
insured.
An endorsement adds coverage for risks not listed
initially, as incorporated in your client's policy. An endorsement will help give the further
coverage your clients need. The endorsements are an easy way to add, modify, and remove coverage in the HO3 insurance. There are endorsements available for almost all
blankets.
These are four significant endorsements that
agents make use of in a standard HO3 insurance:
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Replacement Cost Endorsement: Some carriers provide replacement cost endorsements for personal property- Coverage C. The insured will get the property replaced without any depreciation deduction.
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Back-up Water Endorsement: Damages that are caused by broken or clogged lines from back-up water or drainage is an exclusion in the HO3 insurance.
Negotiations with insurers can help agents add this to the insured's policy.
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Extended Replacement Cost Endorsement: An extended replacement cost endorsement for Coverage A or Dwelling coverage can be an addition. The financial burden for the insured will be more with this since they have to pay 20% extra depending on the state.
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Scheduled Personal Property Endorsement: These endorsements are provided mainly for personal belongings like jewelry, guns, equipment, and musical instruments.
HO3 insurance agents can opt for more endorsements based on their client's needs as well.