What does an endorsement typically do in an insurance policy?

An endorsement in an insurance policy serves the purpose of adding coverages, enhancing the protection provided by the base policy. It allows policyholders to customize their insurance to better meet their specific needs by incorporating additional protections that were not included in the original policy. For example, a homeowner may purchase an endorsement to add coverage for a specific valuable item, such as jewelry or art, which is typically subject to lower coverage limits under the standard homeowners’ policy.

Endorsements can also be used to modify existing terms, but their primary intention is often to enhance coverage, thereby ensuring that the insured has adequate protection for particular risks that may not be covered under the initial policy parameters. This flexibility is crucial for aligning the policy with the unique requirements of the policyholder.