What is an endorsement?

Insurance companies tend to work from a basic, standardized insurance policy form, which is the foundation of your insurance contract with the insurance company. Because it is unlikely that a single policy form will meet the needs of every person who needs a home insurance policy, insurance companies created endorsements to help modify basic policies and tailor them to suit every policy holder’s insurance coverage needs. Basically, endorsements can both add or remove coverage from a basic policy.

When purchasing your homeowners insurance policy, you have options to enhance your coverage, but you may not choose all of them. Each of the options you choose, such as selecting replacement cost versus actual cash value, can be reflected on your policy with an endorsement. The process of modifying the policy in this way is known as “endorsing” the policy. It is very important to review all of your policy’s endorsements, as they may completely change the coverage terms of your basic policy form.

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