It’s rare for a basic car or home insurance policy to cover all of a policyholder’s needs and requirements right off the bat. Basic forms of insurance can help drivers, homeowners and a variety of other types of policyholders protect themselves from a number of events; but, not all risks are covered by basic forms of coverage.
This is where investing in an insurance endorsement comes into play.
Continue reading to learn what an insurance endorsement is, some common examples of car and home insurance endorsements and much more.
What is an endorsement and how can it protect policyholders in Canada?
An insurance endorsement (also commonly referred to as an insurance add-on) is a form of optional coverage that you can include in your home, auto, condo, etc., insurance policy. Insurance endorsements protect policyholders from unforeseen risks that aren’t covered by basic policies.
Unlike certain forms of insurance (like third-party liability insurance for drivers in Canada), insurance endorsements aren’t required by law. Policyholders can choose which add-on (or add-ons) they’d like to purchase. Having the ability to do this gives policyholders the ability to tailor their coverage to suit their unique wants and needs.
Researching the various types of insurance endorsements makes it easier to find the right add-on (or add-ons) that apply to you. For example, if you're worried about the risk of flooding, then it may be wise to speak with your Surex insurance advisor about adding overland water coverage to your policy (we’ll touch on overland water coverage again shortly).
That being said, homeowners that live in an area with a high risk of flooding may not need to purchase earthquake insurance. Although a policyholder has the freedom to purchase any add-on that they’re eligible for, it doesn’t make sense to invest in an insurance endorsement that covers risks that aren’t likely to occur to your home.
What are endorsements in insurance for cars in Canada?
Here’s a list of some of the most common types of car insurance endorsements for Canadian drivers:
- Ride-sharing coverage
- Coverage for transportation replacement
- Disappearing deductible coverage
- Comprehensive coverage
- Accident forgiveness and ticket forgiveness
Ride-sharing coverage is an insurance endorsement that protects drivers that work for a ride-sharing company. A ride-sharing add-on provides drivers who work for a ride-sharing company with coverage while on the job (this is something that most basic car insurance policies don’t cover). Speak with your Surex insurance advisor to learn if you’d like to learn more about this add-on.
*Ride-sharing coverage is not available in all Canadian provinces.*
Coverage for transportation replacement
Coverage for transportation replacement is a type of car insurance add-on that covers temporary transportation costs (ride-sharing, public transportation, rental vehicles, etc.) after a driver is involved in a covered loss.
Disappearing deductible coverage
The disappearing deductible add-on rewards drivers by removing a portion of their deductible at the end of their policy period (generally one year) if they remain accident and claim-free. Drivers with a disappearing deductible add-on can eventually reach a $0 deductible if they can go accident-free and claim-free for several years.
Click here to learn more about the ins and outs of the disappearing deductible add-on.
Comprehensive coverage is among the most common forms of additional car insurance due to the fact that it protects drivers from a wide range of events that are out of their control.
Unlike third-party liability insurance (which covers policyholders' liability exposure in the event of a collision that damages another driver, passerby or third-party property), comprehensive coverage protects policyholders from events that (generally) occur while the policyholder isn’t driving. Some examples of these events include damage from falling objects (tree branches, loose roofing materials, etc.), vandalism and theft. Comprehensive coverage can also cover windshield and collision damage with a moving animal.
Accident forgiveness and ticket forgiveness
Types of endorsements that "forgive" drivers after their first collision or ticket. This ensures that their premium will not increase after that particular event.
What are endorsements in insurance for homes in Canada?
Here’s a quick look at some typical home insurance endorsements:
- Overland water coverage
- Claim protector add-on
- Service line endorsement
- Sewer back up coverage
Overland water coverage
As mentioned earlier, overland water coverage (also known as flood insurance) is an optional form of home insurance that protects homeowners from floods and unavoidable overland water damage. Overland water coverage isn’t legally required, but it is an asset for policyholders that want to ensure that their home and belongings (if you have renters coverage) are protected in the event of water entering your home.
Claim protector add-on
The claim protector add-on is highly beneficial for policyholders with a claims-free discount. Homeowners with the claim protector add-on get to keep their claims-free discount after making their first claim. So, if your home was damaged by a one-off event, having a claim protector add-on allows you to continue taking advantage of your previous claim history.
Service line endorsement
The service line add-on financially aids homeowners when they need to replace or repair a compromised service line on their property.
Sewer back up coverage
Protects policyholders from damages that occur from a sewer or septic tank back up. This is a recommended endorsement for home, renter and condo insurance policies.
Where can homeowners find quotes for home and car endorsement insurance?
Whether you’re looking to purchase insurance add-ons for the first time or have amended your policy in the past, finding the right insurance add-ons can feel like a daunting task. If you’re having a hard time finding quotes that work with your budget and meet your needs, the first thing you should do is contact a Surex insurance advisor.
Unlike insurance agents, our insurance advisors (our preferred title for insurance brokers) work with a number of Canada’s top insurance carriers, like Economical.
So, instead of offering products from a single company, our team of advisors can provide you with top-notch options from a variety of insurance providers. Having the ability to compare quotes from numerous providers makes it easier for policyholders, like you, to get the best price on coverage (without skimping on quality!).
Ask your insurance advisors about the optional endorsements that our partners offer for the following types of insurance:
- Trailer and RV
Call or click to get in touch with your personal Surex insurance advisor and take your first step towards receiving quotes from Canada’s top insurance carriers in ten minutes or less. While chatting with your advisor, don’t forget to ask how we can help you save up to 25% when you bundle your policies with one of our partners.