Examples of endorsements related to dwelling value:
- Dwelling guaranteed replacement cost. Claim for a total dwelling loss may exceed the policy limit.
- Extended dwelling replacement cost. Claim for a total dwelling loss may exceed the policy limit up to the amount listed on the endorsement (often 20 to 25 percent).
- Inflation guard. Dwelling limit increases each year according to inflation percent listed in the endorsement.
- Building ordinance and law. Claim payout may exceed the policy dwelling limit by a percent outlined in the endorsement (often 10 to 25 percent) to meet the extra cost of complying with current building code.
- Modified replacement cost. You can insure the home for less than the co-insurance requirement. Claim settlement is subject to policy limit and repairing/rebuilding using today's building materials and practices.
It is ultimately the policyholder's responsibility to be sure the home is properly insured. Review your homeowners policy and dwelling limit prior to renewal each year. Report improvements, room remodeling or add-ons that could affect the replacement cost of your home. Be certain the home has enough insurance on it to repair or rebuild following a fire, tornado or other unexpected loss.