In terms of insurance, what is an "endorsement"?

An endorsement is a document that modifies the terms or coverage of an existing insurance policy. This can include changing the coverage limits, adding new types of coverage, or excluding certain perils or items from coverage. Endorsements are important because they allow insurers and policyholders to tailor their insurance contracts to better fit their specific needs without having to create an entirely new policy.

For instance, if a homeowner wants to add coverage for specific valuable items, an endorsement would be added to their existing homeowners’ policy to reflect this change. This flexibility is essential in the insurance industry, as it provides a way to adapt to changing needs and circumstances without the complications of starting a new policy.