Guideline: IL Homeowner's Inflation Endorsement 1 (Residential Only)

Explanation:

This endorsement increases the amount of insurance on an annual basis in order to adjust the policy for inflation. The rate of increase is tied to an index as set forth in the endorsement. The amount of insurance increases until 150% of the original amount of insurance is reached.  This endorsement is available for any one-to-four family residential structure or a Residential Condominium Unit.

Underwriting Requirements:

1. This is additional insurance and therefore there is a cost associated with this endorsement.  In the Chicago market the cost is $150. 

2. This endorsement is designed to increase the policy amount based on inflation rates.  The policy amount will increase by 10% of the policy amount each year for the first 5 years.  The increase shall occur on the anniversary of the policy date.  The increase will stop at 150% of the policy amount.

3. The property must be 1-4 units residential or a Residential Condominium Unit and the primary residence of the insured.

4. At the time any claim is issued, this endorsement will control with regards to the current amount of the policy.