What is an "endorsement" in insurance?

An endorsement in insurance refers to a provision that modifies an existing insurance policy. This can include adding, removing, or altering the coverage, limits, or terms within the policy. Endorsements serve as important tools that enable policyholders and insurers to customize coverage to better fit specific needs or circumstances. For example, a homeowner may add an endorsement to include higher personal property limits or to cover specific items not included in the standard policy.

This concept is foundational because insurance policies are often standardized, and endorsements provide the necessary flexibility to adapt to individual situations. Their role in the insurance process is critical, as it allows for adjustments that reflect changes in risk or coverage requirements without needing to issue an entirely new policy.