Policy Endorsements In Your Insurance Policy - Do They Limit Coverage?

​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.