Skyline.

Insurance companies make policies to provide coverage that most people require. The more people want typical coverage, the more affordable premium would be. It is due to risk distribution among many people. Examples of these general policies are HO3 insurance, auto insurance, dwelling insurance, personal articles insurance, to name a few.    

Sometimes, an insured may need a more specific coverage that the policy doesn't provide.     

  

New polices surely sound profitable for a carrier, but how do they address this problem without making premium higher for most?    

They use an endorsement to the insured's policy. An endorsement is a change made to the plan. It can add, remove, or modify coverage to cater to the insurance need.    

  

As HO3 insurance is standard insurance used, we will explore an endorsement that is frequented by homeowners.    

  

Standard HO3 insurance endorsement- Scheduled personal property   

Some personal property such as jewelry, musical instruments, guns, collectibles have lower coverage limits. The coverage is inadequate when compared to these high- value items.    

Scheduled personal property endorsement is an additional insurance policy in the HO3 insurance.  It provides more coverage than the standard HO3 insurance.  When your clients have this policy, they can get full value of expensive belongings such as furniture, during the claim process.  

Using a scheduled endorsement will cover the specified article for a specific value that is agreed upon by the insurer.     

In addition to this, it provides coverage to these items in case of unintentional loss or mysterious disappearance. Sometimes, the scheduled property may be eligible for deductibles.   

Let's understand this with an example. Your client has requested to schedule their diamond earrings for $20,000. The earrings are expensive, and she wants complete protection.     

Now, if she loses the earrings and files a claim, the carrier will provide her the full $20,000.    

Sometimes, carriers do not provide a massive limit for HO3 insurance endorsements. In this case, I would recommend using personal articles floater for jewelry. The HO3 insurance opts for other endorsements as well.