what is an endorsement in insurance

An insurance endorsement, also known as a rider, is a legally binding change to an insurance policy that modifies the original policy to include, exclude, or change coverage. Endorsements can be used to increase standard limits of coverage, add or delete people and locations to your current insurance policy, and address issues or items not in the original contract or policy. They can also provide additional coverage, modify coverage, or exclude coverage for specific types of claims. Endorsements can be added at the time of purchase, mid-term, or at renewal time, and insurance premiums may be affected and adjusted as a result. Endorsements can be issued for homeowners and renters policies, life insurance, and auto insurance policies. When an endorsement reduces or increases coverage, the monthly premium and deductible can change as well. It is important to be informed of any insurance policy changes and to compare the endorsement to the original policy to ensure that you understand the changes.