What is an "endorsement" in an insurance policy?

An endorsement in an insurance policy refers to an amendment or addition that modifies the original terms of the policy. This can include changes such as adding coverage for a specific risk, altering coverage limits, or specifying certain exclusions. Endorsements are crucial because they allow flexibility and customization of insurance contracts to better fit the needs of the policyholder.

For instance, if a homeowner wants to add coverage for a valuable item that is not included in the standard homeowners policy, they can use an endorsement to adjust their policy accordingly. This ensures that the policy accurately reflects the coverage desired by the insured, highlighting the importance of endorsements in tailoring insurance solutions.