What is an endorsement in insurance?

An endorsement in insurance is a document that modifies an existing insurance policy by adding or changing coverage terms. Endorsements are essential because they allow policyholders to customize their coverage according to their specific needs. For example, an endorsement might add extra coverage for personal property or expand liability limits. This flexibility is vital in ensuring that an insurance policy remains relevant as circumstances change, such as when an individual acquires new assets or requires different protections.

The value of endorsements lies in their ability to enhance or alter the coverage without needing to rewrite an entire policy, making them a practical and efficient solution for both insurers and insured parties. Through endorsements, policyholders can maintain appropriate levels of protection throughout the life of the policy.