One of the most important parts of an insurance policy today is also one of the most overlooked and misunderstood. It’s called an insurance endorsement or a rider. In short, it’s a minor or even a major modification to the original insurance policy. The insurance endorsement adds, excludes or changes coverage from the original policy.
Endorsements or riders can be found on homeowners insurance, renters policies, life insurance, and auto insurance policies. And this add-on can be issued from the insurance company, or it may be something you ask to include. While these endorsements are typically issued when initially purchased, they can also be added at mid-term and at time of renewal.
The Good: How Insurance Endorsements Can Be Positive
While homeowners and business owners may not appreciate every insurance endorsement, some riders are welcomed. Many endorsements are used to fill gaps in coverage or to increase coverage limits for specific risks.
An example of this would be adding protection against water backup to cover your expensive jewelry or valuable artwork. If these treasures were not included in your original policy, they wouldn’t be covered. However, by expanding your coverage with an endorsement to include these costly items, you’re protected.
Rather than dealing with the hassles and expense of writing an entire new policy to cover your belongings, it’s easier and more cost-efficient to simply add that endorsement to your existing policy.
The Bad: Why You Should Be Cautious of Certain Insurance Endorsements
Buyer Beware. Some insurance endorsements are written by the policy holder, not always visible, and certainly not appreciated. Some riders can be used by the insurer to restrict or remove certain coverages or add exclusions to your policy.
One example would be a flood exclusion endorsement that would limit your coverage in the event of a plumbing failure. Another example is a designated premises endorsement that only covers insurance claims on a specific, designated property or location. Oftentimes, the policy holder is unaware of such exclusions to their policy or doesn’t find out they’re not covered until after the incident.
On the one hand, a “hidden” insurance endorsement might limit your insurance coverage. On the other hand, an insurance rider can also result in a higher premium.
The Ugly: Forgoing Your Rights to Professional Help
As an insurance policy holder, you should have the right to work with anyone you want to in order to streamline your settlement and maximize your payout. As public adjusters, companies like Doyle Adjustment Group, are there to ensure policyholders better navigate the difficult waters of insurance claims.
Unfortunately, a common practice among insurance companies is that they tack-on an anti-public adjuster endorsement as a provision to the policy. This rider explicitly forbids the policyholder from hiring a public adjuster. This strict endorsement forces policyholders to go through the claims process alone without any professional help.
Of course, this benefits the insurance company since they can more easily underestimate your insurance claim. The policyholder, however, loses out on professional representation that can help gather data and documentation, negotiate with the insurance company, and provide a greater settlement to you.
The Team at Doyle Adjustment Group Can Shed Light on Your Insurance Policy Endorsement
If you have any questions about a current endorsement on your policy or suggestions to add a rider to your policy, call the team with more than 20 years of experience — Doyle Adjustment Group. We will help guide you and support you through the entire insurance claim process. Let us handle all the stress and complexities that come with securing the settlement you’re rightfully owed.
