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white houseWhen creating Kankakee home insurance policies, underwriters generally try to meet the needs of the broadest market possible. Thus, the basic home insurance policy is a boilerplate whereby more specific parts can be added as required. For example, most people do not conduct business from home and that would have to be added if required. The added piece is termed as an “endorsement” or a “rider”. Let’s consider four of the most important endorsements now.

Personal injury endorsement

A standard home insurance policy does in fact cover bodily injury. However, it does not cover personal injury or injuries of a non-physical nature. This includes:

-        Invasion or violation of the right of privacy within a dwelling

-        Wrongful entry or eviction

-        False arrest

-        Slander and defamation

A personal injury endorsement will also cover personal injury liability such as legal damages or outstanding fees.

Personal property endorsement

You as the homeowner may purchase a scheduled personal property endorsement. The endorsement is specific to a particular piece of property and no deductions are made for depreciation and no deductible applies.

Similar to the personal property endorsement is personal property replacement cost. Standard home insurance pays out on actual cash value for any stolen or damaged personal property. Nevertheless, it will not cover depreciation. With personal property replacement cost, the actual cost to replace damaged or lost items is met through this added endorsement.

Earthquake endorsement

Less common but still important (depending on which region your home is located), earthquake endorsements cover other incidents besides earthquakes including landslides or similar land movement as well as volcanic eruptions. In states where the frequency of earthquakes is high such as in California, the deductible rises to between 10% and 25% of the value of the main residence.

Inflation guard endorsement

A home should be insured for at least 80% of its current value. If not, you as the policy holder will not receive the full replacement cost. However, you are at liberty to purchase an inflation guard endorsement, which increases annually by around 4% to 6% depending on your requirement. For example, if your home is insured for $200,000 with a 5% inflation guard endorsement, after a year of making payments, the value would rise to $210,000.

There are of course a number of other endorsements available depending on your own personal needs. Give us a call at 815-468-8763 in order to determine which are the most suitable for you and we’ll work within the confines of your budgeting level.

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