 I had an interesting communication with a friend the other day when she received her insurance policy renewal packet … specifically the endorsements page list.
A residential insurance policy should include the policy jacket, declarations page, checklist of coverage and forms and endorsements to the policy. The endorsements are critical, and there are some who do not realize that these endorsements change the coverage that is listed within the body of the insurance policy. It is important to understand them and know what is covered, limited and excluded. After reviewing her listed endorsements, some of which were standard, I noticed she had a roof coverage endorsement and a matching endorsement. Roof Coverage Endorsement The roof coverage endorsement limits coverage for their roof based on the condition of their roof at the time of the loss and whether a hurricane or named stormed damages the roof. Due to the exclusions within the endorsement, there is very little roof coverage and leaves it wide open for the insurance company to exclude the roof and not provide coverage. Roof Depreciation Schedule Depending on the insurance company, there may be a Roof Depreciation Schedule that lists the type of roof, age of roof, and the amount of depreciation that will be deducted due to these factors. The depreciation is not recoverable. If you sustain roof damage and your roof needs replacement, the insurance company will arrive at a replacement cost figure for the roof replacement. They will then deduct the depreciation based upon the roof type and age, then deduct your deductible. For example, if your roof is 23 years old, there will not be much coverage if it were damaged, and you would be out of pocket for a large sum of money to replace the roof. Matching Endorsement The matching endorsement is a relatively new endorsement included in insurance policies within the last few years. More and more insurance companies are utilizing it in their policies. What this means if you have this endorsement … Let’s say you file an insurance claim for property damage from a plumbing leak and it damages the floor in your living room. The floor is not repairable and needs to be replaced. This same flooring runs continuously from room to room throughout your property, but those other rooms are not affected by the loss and were not damaged by the loss. This endorsement will limit the payment to 1% in the undamaged rooms of your property. Request Your Policy You should always have a full and complete copy of your insurance policy. Never discard it. If you are insured with the same insurance company for a few years, you will more than likely only receive a renewal packet before the policy term expires, not the full policy. I cannot say this enough … do not discard your original policy because the renewal is only a few pages in comparison to the full policy and does not contain all the policy language, forms and endorsements. Our team at Reliant has the knowledge and experience to understand insurance policies. If you have a new, underpaid, or denied insurance claim, we can help. Contact us today and let us do the hard work for you.
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 Whether you own a commercial or residential property in Naples, Florida, or anywhere in the state, you should have a complete copy of your insurance policy.
Understanding coverage is critical when it comes to filing a property damage insurance claim. I cannot tell you how many times we request a copy of the policy from a client, and they only send the declarations page. Why You Need The Full Policy Although the declarations page of an insurance policy will sometimes list forms and endorsements that are within the policy, it does not provide the full language written within your policy explaining the coverages, exclusions, and the wording in those specific forms and endorsements. What many do not realize is that the forms and endorsements can change your coverage. So, the policy language may read one way in the body of the policy, but the forms and endorsements change the actual coverage and supersede the policy's language. Understanding Your Policy & Coverage We just met with a gentleman who had water damage to multiple rooms of his home, which was the result of his roof leaking. Upon review of his policy, there was specific language in his policy that was a condition for coverage. He was convinced that no matter what, his claim should be covered and felt the insurance company was obligated to pay his claim after all the years he paid insurance premiums. In the land of make-believe, it would make sense, and coverage would be afforded just because he paid his premiums. However, in the real world, that’s not how insurance coverage works. Having inspected his roof, I could clearly see where coverage would be afforded, and I explained how and why the insurance company should cover the claim. Request Your Policy You should always have a complete copy of your insurance policy. If you are insured with the same insurance company, you will receive a renewal before the policy term expires. Never discard the original policy because the renewal is only a few pages in comparison to the full policy. Our team has the knowledge and experience to understand complicated insurance policies. If you have a new, underpaid, or denied insurance claim, we can help. Contact us today. |
