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What is an Inflation Guard Endorsement?

What is an Inflation Guard Endorsement

One of the things that we find insureds’ miss in settling their insurance claim is the Inflation Guard Endorsement. Many have this in their policies but are not exactly sure what it means.

Basically, an inflation guard endorsement insures you for the increasing value of your property. If the value of your property is increasing, your policy must be periodically increased to maintain proper coverage. Even though the amount of coverage is adequate at the time of inception of the policy, it may not be enough in the future.

To aid you in keeping coverage at an adequate level, some companies offer an Inflation Guard Endorsement. This endorsement allows your insurer to automatically change your policy limit during the policy period. Normally, the higher premium is not paid until the time of renewal. The insurance companies like this because they get to increase their earnings.

Even if you have this endorsement in your policy, you should check your coverage limits periodically to make sure you are adequately insured. As Public Adjusters, Brown – O’Haver wants you to insure your property adequately but not excessively. We recently assisted an insured get his claim settled and his insurance was twice the value of his property. Insuring your property too much is like putting more stamps on an envelope than your need. In some states, such as Montana, such a total loss will trigger payment for the policy limit. Many others, such as Oklahoma or Arizona, do not. Your loss in these states and others are computed and paid at the amount of the loss.

Not all companies offer this endorsement so review your policy or check with your agent. If you have issues, we would like to assist you. Considering the fact that congress is spending money like a drunken sailor, inflation is inevitable. Get ready for this inflation and “gird up your loins”. Brown – O’Haver Public Adjusters recommends that you obtain an Inflation Guard Endorsement if you don’t have one.

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