What Is an Insurance Endorsement?
- An insurance endorsement is a modification or addition to an insurance contract that affects the terms or scope of the original policy.
- It might be granted throughout your insurance term, at the time of purchase, or upon renewal. It's a legally binding addendum to a contract.
- Endorsements stay in place until your policy expires. They may renew under the same conditions as the remainder of your policy.
- Endorsements might replace the present policy or be added to your current insurance.
- They cover a number of scenarios, including pulling insureds off a policy, changing addresses, or adding coverage for particular objects.
Definition and Examples of Insurance Endorsements
An endorsement, or "rider," may be used to add, eliminate, omit, or amend coverage. It might be granted throughout your insurance term, at the time of purchase, or when you renew the plan. It's a legally binding modification to an insurance contract.
For example, you may add an insurance endorsement to cover precious jewelry or paintings that would not be covered by your ordinary homeowners' insurance policy.
- Alternative name: Rider
How an Insurance Endorsement Works
NoteOne form of endorsement typically utilized for a short duration is a vacancy permit for a property that's under renovation. Your homeowner's insurance coverage may be reduced when no one is residing in the house if you don't have this permit.
Forms of Endorsements
What Do Endorsements Cover?
NoteYour deductible is the amount you pay for covered losses before your insurance starts coverage.