Property claims glossary
What is a policy endorsement?
An endorsement is a written change to an insurance policy that adds, removes or narrows coverage, or changes how a loss is settled. On a property claim the endorsements decide what the base form actually promises, so a coverage answer is only right if every attached endorsement has been read.
Worked example · fictitious claim
A family's policy covers the roof at replacement cost, but a roof surfacing endorsement settles the shingles at actual cash value instead. The roof surface costs $18,000 to replace and carries $9,000 of depreciation, so the endorsement lowers the roof payment from $18,000 to $18,000 − $9,000 = $9,000, before the deductible.
How it affects a settlement
An endorsement can raise or lower what is owed, change the deductible or change when money is released. Missing one leads to an overpayment or an underpayment, depending on which way it cuts.
In practice
A document that amends the base insurance policy: adding, removing, or narrowing coverage. Real property policies carry dozens. Because endorsements can override both the base form and each other, coverage cannot be determined from the policy form alone; you must follow the full chain of amendments.
Related
Endorsement chain · Declarations page · Policy coverage checking · property claims glossary