1. Sewer Backup Coverage

Standard home insurance policies don’t cover sewer backups. Sewer backup typically covers water damage from a drain, excess rain, eavestroughs, sewer, septic system, or sump pump. This home insurance endorsement protects you against water damage from blocked drains or malfunctioning sump pumps. Sewer Backup Coverage encapsulates cleanup, water removal, repairs, and replacement of damaged items. Always check with your provider for specific terms, but the cost of this optional endorsement and coverage available will vary from one insurance provider to the next.

Tip: Consider installing a backwater valve in your home to help stop a potential sewer backup.

2. Inland Flooding Coverage

Flood damage is caused by surface water from overflowing rivers, lakes, snow, or rain. This endorsement is now available to Canadians because inland flooding is becoming more common as the weather changes. More homeowners and renters should consider this home insurance endorsement. Spreading the risk among homeowners with different levels of flood risk makes coverage more affordable. According to research, 94% of Canadians can now add an inland flooding endorsement to their home insurance policy.

3. Earthquake Home Insurance Endorsement

Ontario’s seismic activity is low but not nonexistent. As a result, most home insurance policies exclude damage from earthquakes. This has historically been a concern to provinces such as British Columbia and Quebec. According to the Insurance Bureau of Canada (IBC), there is a 5-15% risk that a powerful earthquake will hit the area from the St. Lawrence River Valley to the Ottawa Valley, which includes Quebec City, Montreal, and Ottawa.

Adding the earthquake home insurance endorsement ensures your home and belongings are protected during a quake. Depending on your insurer, the earthquake endorsement “may also cover the cost of bringing your home up to current building codes during the repair process, as well as other expenses, like debris removal.” Earthquake endorsements have a separate deductible and are affordable depending on where you live.

4. Home-Based Business Coverage

Running a business from home? Standard home insurance often leaves business equipment, tools, and liability uncovered. A home-based business endorsement can protect your property and prevent a policy cancellation if something goes wrong.

A home-based business home insurance endorsement or rider is ideal for freelancers and part-time business owners. Your home insurance policy does offer a small coverage limit for books, tools, and instruments necessary for a business. However, if you’re running a business from home, you may not have enough insurance to protect your business equipment. Without the home-based business home insurance endorsement, your insurance company may cancel your policy. Check with your isure broker if you’re eligible, and if so, this will be added to your home insurance policy instead of purchasing a full commercial insurance policy.

5. Scheduled Personal Property

Your home insurance policy limits coverage for specific categories of specialty belongings. This may include your computer, jewelry, sports equipment, bicycles, and collectibles. When the value of these items is higher than the limits listed in your home policy, you’ll need to change the items “scheduled” on your policy. Scheduled property endorsements allow you to add coverage for high-value items to your home insurance policy. Even if you have other Ontario home insurance endorsements, the coverage limits might not be enough to cover high-value personal property.

6. Guaranteed Replacement Cost

Guaranteed Replacement Cost (GRC) ensures your home is fully rebuilt after a total loss, even if costs exceed your policy’s estimated replacement value. If your home was initially valued at $300,000, but reconstruction costs rise to $360,000, GRC covers the full amount, preventing out-of-pocket expenses. However, any voluntary upgrades during reconstruction would be at your own cost. This coverage provides peace of mind by guaranteeing your home is restored to its original condition, no matter the increase in construction costs.

Important: If you decide to make some upgrades during the repair or rebuild due to a claim, you will typically be responsible for the difference in cost.

7. Watercraft Home Insurance Endorsement

If you use or own a boat, adding a watercraft endorsement to your home insurance policy provides liability coverage and coverage for damage to your boat (while you’re using it or while it’s docked). This Ontario home insurance endorsement generally applies to smaller boats used for recreation, and larger boats like yachts require separate policies.

8. Personal Cyber Insurance Coverage

There are more cyber-attacks now than ever before, and if you have had a cyber breach, it could cost you a fair amount of money to put your life back in order. Companies are starting to offer personal cyber insurance coverage that would respond to cyber-attacks, ransomware, identity theft, and more.

9. Claim Settlement Options

Some insurance companies will offer a home insurance endorsement that changes how claims will be settled. For example, if you are retired and think you would not want to replace your home if it burned down, you could opt for a full replacement cost cash settlement. Not every insurance company will offer this, but it doesn’t hurt to ask your isure broker if your insurer does.

10. Home System Protection Endorsement

Many policies exclude mechanical and electrical breakdown of your appliances, computers, and heating and cooling systems. Coverage offered would encompass personal property covered under your home insurance package that generates, transmits, or utilizes energy. They also include equipment that operates under vacuum or pressure, such as boiler systems.

Examples of items that would fall under the description above are:

Air conditioning systems
Built-in Dishwashers
Built-in Stove
Boiler
Furnace
Hot tubs
Swimming pool heater
Water heater
Heat pump
Dehumidifier
Pool filter
Intercom
Emergency generator

As with all insurance policies, insurance companies have different rules, exclusions, and coverages. It is always best to refer to your policy wordings or have your insurance broker comb through the coverages.

11. Service Line Coverage

You may not realize you are responsible as a homeowner for the underground service lines running from the street to your home. Service line coverage protects you from losses due to damage or failure of these lines by extending your home insurance coverage to underground water piping, wiring for power, and data and communications into your home.

12. Liability Limits & Personal Umbrella Policies

Lawsuits are becoming more common in Canada, and ensuring that your liability limits are enough to cover any lawsuit against you is essential. You can only increase your liability limits so far on your policies, but there is also a personal umbrella insurance policy that could increase your liability coverage. A personal umbrella policy is there to cover you for the extra liability coverage you may need if your policy limits have been exhausted.

Considering these home insurance endorsements, you’re safeguarding your home and investments. Contact one of our isure brokers to explore the best coverage options based on your unique needs.