Insurance is meant to protect you. But sometimes, the standard policy isn’t enough–that’s where endorsements (also known as riders) come in. These insurance add-ons let you add an extra layer of protection and customize your coverage based on your lifestyle and needs, whether you want to protect your valuables at home or extend your policy during an emergency.
In this guide, we’ll discuss what endorsements are, what they can do, and highlight some common endorsements you might want to add to your home and car insurance policy.
What is an endorsement in insurance?
An endorsement (also called a rider, an OPFC in Ontario, or a QEF in Quebec), is an official change made to your insurance policy. It updates your existing coverage by adding, removing, or changing something, overriding the original terms of the contract.
You can think of it as an add-on that customizes your policy to fit your needs better.
For example, endorsements can:
- Add extra coverage (like covering your expensive engagement ring)
- Remove coverage you don’t need
- Change something in your policy (like updating your address)
The most common types of insurance endorsements
Insurance endorsements come in many forms. While the names can vary by province, they usually offer similar types of coverage. Here are the most common car and home insurance add-ons, grouped by what they protect.
Common car insurance endorsements
Replacement cost endorsement: Replaces your vehicle with a new one of the same make/model, or reimburses you for its original value.
Loss of use endorsement: Pays for a rental car, taxi, or alternative public transportation while your car is being repaired after filing a car insurance claim.
Accident forgiveness endorsement: Protects your driving record and prevents your premium from going up after your first at-fault accident.
Family protection endorsement: Covers you and your family if you’re injured in an accident caused by an at-fault driver with little or no insurance (also known as OPCF 44R).
Physical damage to a rental car endorsement: Extends your coverage to rental cars in Canada and the US.
Emergency road service endorsement: Pays for towing services in the event of an accident or breakdown.
Common home insurance endorsements
Sewer backup endorsement: Covers damage from water backing up through drains, sewers, septic systems, or sump pumps, including cleanup and repairs.
Overland water endorsement: Protects against damage caused by freshwater overflowing onto your property from sources like rivers, lakes, or heavy rain.
Above-ground water endorsement: Covers damage from sudden water leakage or discharge from appliances or systems located above ground, like air conditioners.
Equipment breakdown endorsement: Covers repairs or replacement costs for home systems and appliances due to electrical or mechanical failure.
Pool and hot tub endorsement: Provides coverage for any damage or liability related to pools and hot tubs on your property.
Earthquake endorsement: Protects your home and belongings in the event of damage or loss caused by an earthquake.
Emergency endorsement: Extends a policy’s expiration date by up to 120 days if the government declares an emergency and your insurer cannot provide a renewal.
Identity theft endorsement: Helps cover expenses related to restoring your identity after it’s been stolen, including legal fees and lost wages.
Home-based business endorsement: Extends your coverage to business equipment and liability if you run a small business out of your home.
Scheduled personal property endorsement: Provides extra coverage for high-value items, such as jewelry, sports equipment, and electronics that exceed your standard policy limits.
Can you check what endorsements you have?
Yes, you can check what insurance endorsements you have. You can usually find a list of endorsements included in your policy documents, which were either emailed or mailed to you when you first bought or last renewed your coverage.
Here’s how to check how many endorsements you have:
- Locate your most recent policy documents: Find the physical or digital copy of your insurance policy, which you received when you purchased or renewed your coverage. If you can’t find it, log into your insurer’s online portal or contact your insurance provider to request a copy.
- Look for the endorsements section: Endorsements are often listed in a specific section of the policy. Scan for sections titled “Endorsements,” “Riders,” or “Policy Amendments.”
- Check for coverage modifications: If you can’t find a dedicated endorsements section, look through the policy for any phrases such as “added coverage”, “special provisions”, or “adjustments to standard coverage.” These usually indicate an endorsement.
When can you add an insurance endorsement?
Depending on your insurance provider, you can usually add an endorsement when you first purchase a policy, during the term, or when it comes time to renew it. Remember, endorsements can help tailor your coverage as your circumstances change, such as buying a new car, buying a new home, or adding a driver to your policy.
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