An insurance endorsement is an amendment to an existing policy that changes the terms or scope of the original insurance contract. For example, if you choose to purchase additional coverage to broaden your protection, it may be referred to as an endorsement.
It can also be used to clarify language or change things like contact info or other administrative items. Such an amendment to the policy can be issued at any time after the policy is issued.
How Endorsements Work
An insurance endorsement is essentially a change to the policy at any time during the term, without needing to renew the policy. The change in coverage may results in an adjustment to the premium on the policy. An endorsement may remain on the policy at its renewal or it could expire before such time.
- Additional Coverage: a type of endorsement that adds coverage beyond what was previously on the policy
- Exclusions: certain endorsements may exclude or restrict coverage for a specific type of loss
- Coverage Modifications: some endorsements will adjust the scope of existing coverage on the policy by expanding or restricting coverage
You should receive documentation outlining how an endorsement changes your policy, and compare this to your declarations page . Make sure you fully understand the new document’s coverages and limits. If you have any questions or concerns, contact your insurance provider right away.
Types of Insurance Endorsements
Endorsements to your policy may amend an administrative item, change coverage, or add or remove additional conditions or limitations.
For example, let’s say you plan a boating weekend in the Bahamas. If your policy does not cover navigating in international waters, you can call your insurance provider and they may agree to extend coverage to the Bahamas for that weekend. This could come in the form of an endorsement.
Instead of re-writing the entire policy, you may simple receive a document amending your existing policy.
What do Endorsements Cover?
Insurance endorsements can serve many purposes. For example, if you need to adjust who is listed on the policy, that could be done through an endorsement. You could also choose to add personal property coverage, or change your deductible or another coverage limit on the policy.
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An endorsement alters the policy and becomes a part of legal agreement with your insurer. It will remain active until it expires or the policy is no longer in forceexpires.
Always keep a copy of any endorsement to your policy for reference when considering your coverage and premium.