What is an endorsement in an insurance policy?

An endorsement in an insurance policy is a modification of the original terms of the policy that adds, subtracts, or alters the coverage provided. This allows policyholders to customize their insurance to better fit their specific needs or circumstances. For instance, if a homeowner wants coverage for a specific type of damage not initially included in their policy, they may obtain an endorsement to add that coverage.

Endorsements can be used to expand coverage—for example, by adding protection for personal property or increasing liability limits—or to clarify existing terms in a way that better matches the insured's situation. They are typically issued in writing and become a part of the policy, ensuring that both the insurer and the insured understand the adjustments made.

Other options refer to different aspects of insurance. Documenting premium costs relates to the financial obligations of the policy, renewing a policy is a process to continue coverage after the original policy period ends, and filing claims is about the procedure for receiving benefits under the policy. None of these define the modification of coverage that an endorsement provides.