What is an 'endorsement' in property insurance?

An endorsement in property insurance is a document that is added to an existing insurance policy to modify, enhance, or change the coverage or terms included in that policy. This document can provide additional coverage, clarify certain provisions, or exclude certain risks.

For example, if a homeowner wants to ensure that their policy covers a recently purchased expensive item, they can add an endorsement to extend coverage for that specific piece of property. This flexibility allows policyholders to tailor their insurance to better meet their specific needs and circumstances, reflecting changes in their property or risk exposure.

In contrast, other options do not accurately describe what an endorsement is. A notification of policy cancellation informs the insured that their policy will be terminated, not a change to its terms. A claim for damages refers to a request for compensation due to a loss or damage, while a statement of exclusion highlights what is not covered by the policy, rather than modifying or adding to the coverage itself.