Homeowner Optional Endorsements
Endorsements change, add, and subtract coverage to the insurance policy. Endorsements tailor your insurance to fit your needs. Below is a list of common optional endorsements offered at Armed Forces Insurance:
- Replacement Cost Enhancement (RCE)
RCE offers protection against being “under-insured” by providing 25% additional coverage for dwelling and separate building structures in the event of a catastrophic (major or complete) loss. This endorsement also increases unscheduled personal property coverage limits up to the amount of homeowner (dwelling) coverage. Eligibility for RCE is based on several factors and the state in which the dwelling is located.
- Replacement Cost Coverage (RCC)
RCC changes loss settlement for unscheduled personal property from the usual Actual Cash Value payment (cost to replace less depreciation) to Replacement Cost (the amount you actually pay to replace the loss with a new item of like kind and quality). In most states, this endorsement increases the amount of insurance for unscheduled personal property to 100% of the dwelling coverage amount. RCC is automatically included with an RCE endorsement. Policy limits can vary depending on the state in which the dwelling is located.
- Other Structures Increased Limits
Other Structures Increased Limits provides limits in excess of the automatic 10% of the dwelling amount included in the standard Homeowner Policy. Several structures may be covered by this endorsement with a specified amount of insurance applying to each as an additional limit of insurance. Examples of other structures include detached garages, pools, fences, gazebos, and utility buildings.
- Ordinance or Law Coverage
Ordinance or Law Coverage extends building coverage to apply to additional costs resulting from ordinances or laws regulating construction, repair, or demolition of property. Depending on the policy terms applicable in your state, an Ordinance or Law endorsement can either override the ordinance or law exclusion of the standard Homeowner policy, or increase the percentage of the coverage limits that may be used for this purpose. Coverage limits vary depending on the state in which the dwelling is located.
- Water Back Up and Sump Overflow Endorsement
- Special Computer Coverage
Special Computer Coverage expands the types of loss for which computer equipment is covered. This endorsement does not increase the limits of Personal Property Coverage and it excludes business computers. The Homeowner policy deductible applies to this coverage.
- Earthquake Coverage
Earthquake Coverage provides coverage for damage from an earthquake (including land shock waves or tremors before, during, or after a volcanic eruption) for the dwelling, other structures and personal property. The earthquake endorsement includes a special deductible which is usually equal to 10% of the coverage limit. This deductible applies separately to each category of coverage. Earthquake coverage for California residences is provided as a separate policy through the California Earthquake Authority (CEA). California residents should contact a customer service representative for assistance at 800-495-8234.
- Loss Assessment Coverage
Loss Assessment Coverage increases the coverage limit of liability for covered losses assessed against you by your homeowner or condo association. Check with your association for the amounts that can be assessed against you to ensure you are properly covered.
- Alarm System
Premises Alarm Systems Endorsement provides a premium credit for burglary, fire, or sprinkler systems. The amount of credit given depends on whether the system is being monitored and the state in which the dwelling is located.
The above list is only a few of the endorsements that are available at Armed Forces Insurance. Some endorsements are specifically for people who rent a home. If you have a unique insurance need or situation that requires coverage, for assistance contact a Customer Service Representative 800-495-8234.
