Additional Coverage

What Is Additional Coverage?

Additional coverage is extra insurance protection customers can buy to ensure their home insurance and auto insurance policies include the insurance protection they want. Additional coverages, also known as endorsements, are offered by insurance companies to provide customers with protection beyond basic coverage and policy limits. For example, suppose the value of your jewellery exceeds standard residential coverage limits - which are usually about $6,000. If you purchase additional insurance such as a jewellery endorsement that protects your jewellery to its value, you will be fully compensated in the event of an insured loss.

Why Should I Add Additional Coverage To My Policy?

Additional coverages can be added to your policy to provide extra coverage when needed. Don't be left having to pay out-of-pocket in the event of a loss due to the fact that you don't have the proper coverage. For example, additional coverage for sewer backup protects your home in case of severe weather threats such as significant rainfalls. If a backed-up sewer discharges effluent into your home, you will be covered for damages if you have bought this additional coverage.

What Are Some Additional Coverage Options For Your Home?

Your home is likely your biggest investment. It makes sense to ensure it is properly protected with comprehensive coverages. Some additional coverage options that can be added to your home insurance policy include overland water coverage, service line coverage, sewer backup coverage, identity theft coverage, equipment breakdown coverage, scheduled items coverage, blanket jewellery coverage, and home-based business coverage. Your insurance broker can help determine the additional coverages that should be added to your home policy to provide extra insurance protection. 

Overland Water Coverage

This additional coverage provides protection for damages to your property as a result of overland water entering your home. Overland water property damage may be caused by heavy rainfalls, spring thaws and overflowing creeks and rivers. 

Service Line Coverage

This additional coverage is protection for the potential damage of underground service lines that run to your home. Service lines can include pipes, utility lines or other service lines that enter your residence. In the event of damage to these service lines such as rust or corrosion, freezing, rodents, or landscaping accidents, it is not the responsibility of the service providers to have them replaced, it is the homeowner's responsibility to pay for the cost of damage. A personal property policy typically does not provide coverage beyond your home's foundation, so it is important to add service line coverage as an endorsement to your home policy. 

Sewer Backup Coverage

This additional protection provides coverage for damage caused to your property if wastewater enters your home due to drainage overflows or blockages. Often this occurs in a basement. However, if your plumbing system backs up, it may occur in other areas, such as toilets, sinks, or tubs.

Identity Theft Coverage

Identity theft is additional insurance coverage that will protect you in the event your identity is stolen. Identity theft can occur when someone steals your credit cards, driver's licence, social insurance details, health card, etc. The additional cost of adding identity theft coverage to your policy can cost approximately $20 to $30 per year.

Equipment Breakdown Coverage

This is additional coverage against mechanical and electrical breakdowns in your home. Some items that are included in this additional coverage include water heaters, laundry and kitchen appliances, and heating systems.

Scheduled Items Coverage

Insurance policies have coverage limits, and sometimes those limits may not be enough to insure items to their value. To ensure these items are properly covered, you can "schedule" items to your policies to provide additional protection for those specific valuable items such as bicycles, art, and electronic equipment. Providing appraisals is helpful to protect them to their value.

Blanket Jewellery Coverage

A blanket additional insured endorsement provides additional protection for all your jewellery. Instead of listing valuable items separately, blanket jewellery coverage protects all your jewellery to a specific dollar amount with one endorsement.

Home-Based Insurance Coverage

For business owners who operate a business in their residence, home-based insurance coverage or a commercial policy is good to have. When added to a home policy, home-based business insurance includes coverage in case of problems such as stolen equipment, damages, or accidents resulting from performing business operations out of your home. This additional coverage is inexpensive, especially when the scope of protection is considered.

What Are Some Additional Coverage Options For Your Vehicle?

You likely use your vehicle every day. To drive to work, go to the grocery store, or drop your kids off at school. Ensure your vehicle is properly protected in the event of a loss. Some popular additional coverage options that can be added to your auto insurance policy include loss of use coverage, non-owned automobile coverage, accident waiver coverage, conviction protector coverage, and waiver of depreciation coverage. Your broker can help you determine the additional coverages that you should include on your automobile insurance policy for extra protection. 

Loss Of Use Coverage (OPCF 20)

If your vehicle is in an accident and you cannot drive it until repairs are done, this additional coverage provides you with a rental car until the work is completed up to a specified limit outlined on your policy.

Non-Owned Automobile Coverage (OPCF 27)

If you are driving a vehicle you do not own - such as when you rent a car - this protects you from liability for damage while driving the non-owned vehicle. This additional coverage typically provides coverage for up to $50,000 in damage, an insurance deductible applies, and all additional drivers listed will be included.

Accident Waiver Coverage

This additional coverage option is also known as accident forgiveness coverage. If you are in a motor vehicle accident, your driving record will reflect this and insurance companies will increase your premium. However, if you have purchased an accident waiver endorsement, your current insurance company 'forgives' your first accident and will not raise your rates.

Conviction Protector Coverage

This protects you in case of minor convictions, such as speeding tickets, failing to signal or not wearing a seatbelt. Minor convictions increase your insurance rates; however, your current  insurance company 'forgives' or overlooks your first minor conviction without raising your insurance premium if this coverage has been added to your automobile policy. 

Waiver Of Depreciation Coverage (OPCF 43)

This protects you from the insurance company applying depreciation in a claim such as an accident that destroys your vehicle. A waiver of depreciation endorsement protects against depreciation of a vehicle's value when settling a claim for loss or damage for two to five years after the vehicle's purchase date, depending on which insurance company provides your insurance. A waiver of depreciation maintains a value on your automobile for a period of time, and in a claim, you will receive whichever is the lowest of these: the amount you paid for your new vehicle, the manufacturer’s suggested retail price, or the cost to replace the vehicle with a new one of the same make and model.

Speak With A Dedicated Broker

Speak with an insurance broker for help determining which additional coverages you may want. A broker is an independent insurance representative and trained professional who will contact insurance companies and get you several insurance quotes and competitive prices.


This content is written by our Morison Insurance team. All information posted is merely for educational and informational purposes. It is not intended as a substitute for professional advice. Should you decide to act upon any information in this article, you do so at your own risk. While the information on this website has been verified to the best of our abilities, we cannot guarantee that there are no mistakes or errors.

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