What is an endorsement in the context of insurance?

An endorsement is indeed a document that amends an insurance policy. It serves to either add, modify, or exclude coverage within the existing policy terms. This allows policyholders to tailor their insurance coverage to better meet their specific needs or to address changes in their situation. For example, if a policyholder acquires a new property or needs additional coverage for an item not originally included in the policy, an endorsement can be added to adjust the coverage accordingly.

The use of endorsements enhances flexibility in insurance contracts, making it possible for policyholders to update or change their coverage without needing to purchase a new policy entirely. This process streamlines the management of insurance coverage as circumstances change over time, ensuring that the policy remains relevant and adequate for the insured's needs.