Wading Through the Language of a Coverage Contract
If you have recently purchased insurance, you might have been confused by the language and terms of the policy. Just like other industries, the insurance field has their own list of terms and definitions which define their operations and client expectations. Your agent should have explained many of these special components, but if you still need a good insurance endorsement definition, look no further.
To have an insurance endorsement with your policy simply means there is a change that has been made. In fact, the word ‘endorsement’ means ‘policy change.’ Whenever you decide to add, remove or alter the conditions or terms of the original contract, you have endorsed the policy.
Options of May Cost
On top of having all endorsements approved and executed by your agent or provider in order to be effective, certain changes may add extra charges to the policy. Any change is binding and considered as authentic as the original policy, but the cost of your premium may increase depending on what you add. Homeowners might add earthquake or flood coverage, while a business might add additional insured coverage for a certain event.
If you are still confused as to how an insurance endorsement definition affects your current coverage, reach out to your local agent. They will be familiar with your policy and can tell you if it applies to your situation.