What is an insurance policy endorsement?

An insurance policy endorsement is indeed a document that modifies policy terms or coverage. It serves as an amendment to the original insurance policy and can add, delete, or alter the existing provisions. Endorsements provide flexibility in customizing coverage to meet the specific needs of the policyholder. For instance, if a homeowner wants to include coverage for a newly acquired valuable item, an endorsement can be added to the existing homeowners insurance policy to specifically address this new coverage.

This customization aspect is vital for policyholders, as it allows for adjustments based on changing circumstances or requirements. Understanding the role of endorsements is critical because they directly affect the extent and nature of the coverage provided by the insurance policy.