To a certain extent, the problem lies in the way that homeowner's insurance is sold and often enough agents are in a rush to close a sale while placing most of the responsibility to make sure adequate coverage is in place on the homeowner.

To protect against underinsuring your home, homeowners should insist on a thorough analysis of their homes' replacement value. Added protection can also be obtained through homeowners insurance endorsements as follows:

Earthquake overage

Earthquakes tend to cause the most damage to life and property compared to other natural disasters. It is possibly for this reason that earthquake coverage is excluded from standard homeowners insurance policies. And if you live in an area prone to earthquakes, it can cost a pretty penny to protect against earthquakes. However much it may cost, it’s better to have it than not.

Home Office Coverage

A standard homeowners insurance policy usually covers around $2,500 worth of office equipment. It would be a good idea to increase your coverage if you run your own business from home and you own equipment valued at much more than the $2500 usually provided as cover.

You can do this by either paying for a higher single item cap or purchasing a rider on your insurance policy to cover specific items at their full value.

Personal Articles Floater

Standard homeowners insurance policies do not quite fully cover valuables like jewels, antiques, and other prized possessions. If you have valuables like these in your home, it is adviseable to have your homeowners insurance company establish their real value, which can easily be done with receipts or an appraisal.

Increased Blanket Coverage

You might want to increase blanket coverage if the total value of all of your personal property is higher than what the standard homeowners insurance policy covers.

A personal property inventory sheet can help you determine the total value of your property.

Buy Replacement Cost Insurance

Payouts on claims for personal property are usually based on its worth at the time of loss rather than the actual replacement cost becausedepreciation is deducted from your total payment.

It will therefore make better sense to pay for protection that will replace your lost property regardless of the actual worth on the date of the loss.

Building Code Coverage

Local building laws might require that property that no longer meets updated building and safety legal codes be destroyed, then rebuilt to code. This is especially the case with old properties.

If the amount you’re covered for is not enough for demolition and reconstruction, you might end up footing the difference from your own pocket. Purchasing building code coverage that will cover the costs of the demolition and rebuilding of your home is therefore encouraged if you think such a situation could apply to you.

Homeowners insurance policy endorsements will give you the right protection you need especially in times of disaster where keeping your home and possessions safe is difficult at best.

Find out more about reducing your home insurance premiums.