Insurance Endorsement
A written amendment attached to an insurance policy that changes its terms or coverage.
What is Endorsement?
An insurance endorsement, also known as a rider or policy addendum, is a written modification that amends, adds, or removes specific provisions from an existing insurance policy. Endorsements are legally binding once signed and attached to the policy and take precedence over conflicting provisions in the base policy language. Common endorsements include scheduled personal property floaters (adding coverage for high-value jewelry or art), home business riders, earthquake coverage additions, and umbrella policy extensions. Endorsements may increase or decrease premiums depending on whether they expand or restrict coverage.
Example
A homeowner with a standard policy discovers that their $15,000 engagement ring is only covered up to $1,500 under the base policy's jewelry sublimit. They add a scheduled personal property endorsement that covers the ring at its full appraised value for an additional $90 per year in premium, ensuring full replacement coverage in the event of theft or loss.
Source: National Association of Insurance Commissioners — Understanding Your Policy