I am shopping my rental property insurance and agent gave me a quote has this endorsement really confuses me: "Amendatory Endorsement water Damage" for $1000
The property is in DFW area and is covered @200k for Coverage A. Dwelling, Dwelling Extended coverage, and Dwelling Additional Extended Coverage. Shouldn't those coverage already take care water damage claim?
For 1% deductible, is $1000 for water damage sounds enough for you?
The liability only 50K, but we have umbrella insurance. Will that work?
I am new to insurances. Like to hear some inputs.
@Jaimie Chen An agent would need to read the specific endorsement to see how it will impact your coverage. I can say if you have a 1% deductible on a $200,000 property and $1,000 of water damage coverage, you do not have any coverage.
As far as $50k in liability coverage, that is probably too low. An Umbrella policy typically will start coverage @ $300k, $500k or $1,000,000. so if your current umbrella starts @ $300k, you do not have any liability coverage between $50,001-$299,999.
Lastly, some personal umbrellas do not include business operations, so this property could be excluded.
All things to talk to your agent about.
Let me know if you need any clarification on this.
@Jason Bott , thanks for point it out the gaps, and I am not sure if mine umbrella insurance covers my new rental properties.
I will check my agent tomorrow again to get better ideas.
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