What is "coverage by endorsement"?

Coverage by endorsement specifically refers to modifications or additions made to an existing insurance policy that alter its coverage terms. This could include expanding coverage for specific risks, removing certain exclusions, or updating the policy to reflect changes in the insured’s circumstances. Endorsements are formal amendments that are attached to the original policy, making them legally binding and part of the overall agreement between the insurer and the insured.

For example, if a homeowner wishes to add coverage for a newly acquired valuable item, an endorsement can be added to the policy, ensuring that the item is covered under the specific terms outlined in that endorsement. This is essential for tailoring insurance coverage to meet individual needs, which is why understanding endorsements is crucial for insurance adjusters and policyholders alike.