Several endorsements are available and may be added to a homeowners policy at the time of issuance or mid-term (for an additional premium). The following is a list of the endorsements that may appear on the state licensing exam.
This endorsement automatically increases the amount of coverage on the dwelling and any appurtenant (detached) structures at various intervals once the policy goes into effect. This is done in order to keep up with the increase in replacement value that will result.
This endorsement applies to certain occupations in which the insured is an employee (such as teachers, salespeople, or clerical workers). It extends liability coverage for business pursuits of an insured employee, typically occurring away from the residence premises. It does not cover most home-based businesses or business activities conducted on the premises. Without this endorsement, liability for BI/PD arising out of eligible business pursuits is excluded.
This endorsement deletes the homeowner policy exclusion of liability coverage for business activities on the premises. It allows liability protection if the business activities are incidental to the occupancy of the business (i.e., the insured offering piano lessons in his/her home).
It extends homeowner coverage to include liability protection arising out of the operation of a home daycare business conducted on the insured’s premises. The premium is calculated by head (number of children). This endorsement specifically excludes liability arising from the following:
(Employee injuries and corporal punishment are also commonly excluded.)
For exam purposes, some materials reference a Mobile Home endorsement that modifies an HO policy to provide coverage for a mobile home. In modern practice, mobile or manufactured homes are typically insured using separate policies (such as MH forms or HO-7). State exams may still test the older “Mobile Home endorsement” concept.
This endorsement provides liability protection for certain types of watercraft. It extends liability for larger watercraft arising out of the ownership, maintenance, or use of the watercraft described in the endorsement.
This endorsement, when added, amends Section II of the policy to include liability as a result of personal injury on the part of the insured. Personal injury may be contrasted with bodily injury and includes libel, slander, invasion of privacy, defamation, wrongful eviction or entry, and others. This endorsement will not cover personal injury arising from:
This endorsement modifies the loss settlement of an insured’s personal property and provides that the policy will reimburse the loss of personal property on a replacement cost basis rather than actual cash value
This endorsement allows an insured to individually list pieces of property that possess a higher value than is covered by the basic policy. Items that are commonly covered under this endorsement include:
This coverage is typically open perils and may have no deductible.
This endorsement can be used to amend Coverage A of an HO6 policy to provide coverage for risks of direct loss. This endorsement makes the perils insured under Coverage A of an HO6 become identical to those insured by the HO3 in order to cover additional alterations and improvements made to a condominium unit.
It effectively makes HO-6 Coverage A “open perils” like an HO-3.
This type of loss is generally excluded from coverage under a homeowner policy. For an additional premium, it may be covered. Typical limits vary ($5,000–$50,000) depending on the carrier.
Homeowners insurance policies can be enhanced with various endorsements, offering additional coverage for specific needs:
Inflation Guard: Automatically increases dwelling coverage to keep up with replacement value changes over time.
Business Pursuits: Extends liability coverage for business activities conducted within the insured’s home.
Permitted Incidental Occupancies: Allows liability protection for business activities that are incidental to home occupancy.
Home Day Care: Provides liability protection for operating a home daycare business with specific exclusions.
Mobile Homes: Provides mobile home coverage when endorsed for exam purposes; in practice, mobile homes are usually insured under separate MH or HO-7 forms.
Water Craft: Provides liability protection for certain types of watercraft owned, maintained, or in use by the insured.
Personal Injury: Includes liability for personal injury such as libel, slander, and more, excluding specific instances.
Personal Property Replacement Cost: Reimburses loss of personal property on a replacement cost basis instead of actual cash value.
Scheduled Personal Property: Allows listing high-value items not covered by the basic policy individually.
Unit Owners Coverage: Modifies HO6 policy to provide coverage for direct loss risks, aligning it with HO3 policy.
Water Back-up and Sump Overflow: Covers losses typically excluded from a homeowner policy for an additional premium.
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